Which 1997 currency crisis triggered sharp stock-market falls across Thailand, Indonesia, and South Korea?

The Asian financial crisis triggered sharp stock-market falls across Thailand, Indonesia, and South Korea in 1997.

The crisis began in Thailand after pressure on the baht forced the government to abandon its fixed exchange-rate policy on 2 July 1997. Investors then questioned other economies that had large foreign-currency debts, weak financial supervision, property bubbles, or exchange rates that appeared difficult to defend.

Capital outflows weakened currencies and damaged banks and companies that had borrowed in U.S. dollars. Falling currencies increased the local cost of debt, while collapsing confidence pushed share prices down. The crisis spread beyond Southeast Asia and eventually affected Russia and other emerging markets.

The International Monetary Fund arranged major support packages for Thailand, Indonesia, and South Korea, tied to economic and financial reforms. The episode is sometimes called the Asian currency crisis, but its effects reached stock markets, banks, corporations, and national economies as well as exchange rates.