Which 1997 crisis began in Thailand and triggered stock-market turmoil across East and Southeast Asia?

The 1997 crisis that began in Thailand and triggered stock-market turmoil across East and Southeast Asia was the Asian financial crisis.

Thailand’s government abandoned the baht’s fixed exchange rate on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then fell sharply, and investors reassessed other economies with high foreign-currency debts, fixed exchange rates, and heavily leveraged financial sectors.

Market and currency turmoil spread to Indonesia, South Korea, Malaysia, and the Philippines. The crisis also affected Hong Kong and contributed to a major global market shock. International Monetary Fund programs provided assistance to several countries, with conditions involving financial and economic reforms.

The event is also called the Asian financial crisis or the 1997 Asian financial crisis. It was not simply a stock-market crash: currency devaluations, banking failures, corporate debt, and capital flight were central parts of the episode.