What was the name of the 1998 crisis when Russia’s debt default helped trigger worldwide market turmoil?

The 1998 crisis in which Russia’s debt default helped trigger worldwide market turmoil was the Russian financial crisis.

Russia devalued the ruble and defaulted on domestic debt in August 1998. The country was already under pressure from weak tax collection, political instability, and falling prices for commodities such as oil.

The turmoil spread through global financial markets. The highly leveraged hedge fund Long-Term Capital Management suffered enormous losses, and major banks helped arrange a rescue after officials feared broader systemic damage.

This crisis is distinct from the 1997 Asian financial crisis, which began with pressure on currencies and economies in East and Southeast Asia. The two episodes were connected through investor risk aversion but had different immediate centers.