ROLE OF IMF ENCOUNTERING ASIAN FINANCIAL CRISIS: A COMPARATIVE ANALYSIS OF THE SOUTH KOREAN AND MALAYSIAN ECONOMY
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Abstract
This research work discusses the Asian Financial Crisis to examine its impact on Malaysian and South Korean economies. The role of the International Monetary Fund in the Asian Financial Crisis that occurred in 1997 remained controversial and pushed the aid-seeking countries into further recession. Malaysia restrained from getting assistance from the IMF due to its strict policies and demand for rigid structural reforms. While, South Korea received the largest aid package from IMF, to pay its debts. This package came along with great regulation of South Korea’s economy by the IMF. First, this work provides details about the Asian Financial Crisis, its causes and impacts. Secondly, it incorporates a case study of Malaysia and South Korea to create a comparative analysis of the economic conditions of both countries during the crisis to highlight whether the role of the IMF was significant or not. It analyzes the policy response of the Malaysian government that helped the country to overcome the crisis without the help of the International Monetary Fund (IMF) and also analyses the IMF’s role in recovering South Korea’s economy.
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