what caused the asian currency crisis?
Asian Affairs
contradiction
 A series of currency devaluations and oil crises in the 1970s led most countries to float their currencies . The world economy became increasingly financially integrated in the 1980s and 1990s due to capital account liberalization and financial deregulation . A series of financial crises in Europe , Asia , and Latin America followed with contagious effects due to greater exposure to volatile capital flows . The global financial crisis , which originated in the United States in 2007 , quickly propagated among other nations and is recognized as the catalyst for the worldwide Great Recession . A market adjustment to Greece 's noncompliance with its monetary union in 2009 ignited a sovereign debt crisis among European nations known as the Eurozone crisis . 

entailment
 During the 1997 Asian crisis several Asian economies ran critically low on foreign reserves , leaving them forced to accept harsh terms from the IMF , and often to accept low prices for the forced sale of their assets . This shattered faith in free market thinking among emerging economies , and from about 2000 they generally began intervening to keep the value of their currencies low . This enhanced their ability to pursue export led growth strategies while at the same time building up foreign reserves so they would be better protected against further crises . No currency war resulted because on the whole advanced economies accepted this strategy — in the short term it had some benefits for their citizens , who could buy cheap imports and thus enjoy a higher material standard of living . The current account deficit of the US grew substantially , but until about 2007 , the consensus view among free market economists and policy makers like Alan Greenspan , then Chairman of the Federal Reserve , and Paul O 'Neill , US Treasury secretary , was that the deficit was not a major reason for worry . 

entailment
 The global financial crisis precipitated in 2007 and 2008 shared some of the key features exhibited by the wave of international financial crises in the 1990s , including accelerated capital influxes , weak regulatory frameworks , relaxed monetary policies , herd behavior during investment bubbles , collapsing asset prices , and massive deleveraging . The systemic problems originated in the United States and other advanced nations . Similarly to the 1997 Asian crisis , the global crisis entailed broad lending by banks undertaking unproductive real estate investments as well as poor standards of corporate governance within financial intermediaries . Particularly in the United States , the crisis was characterized by growing securitization of non @-@ performing assets , large fiscal deficits , and excessive financing in the housing sector . While the real estate bubble in the U.S. triggered the financial crisis , the bubble was financed by foreign capital flowing from many different countries . As its contagious effects began infecting other nations , the crisis became a precursor for the global economic downturn now referred to as the Great Recession . In the wake of the crisis , total volume of world trade in goods and services fell 10 % from 2008 to 2009 and did not recover until 2011 , with an increased concentration in emerging market countries . The global financial crisis demonstrated the negative effects of worldwide financial integration , sparking discourse on how and whether some countries should decouple themselves from the system altogether . 

contradiction
 = = = Financial crisis and famine = = = 

contradiction
 Rising inflation and capital flight caused a rapid depletion of the country 's dollar reserves , prompting the government to severely curtail access to dollars in June 2012 . The imposition of capital controls , in turn , led to the emergence of a black market for dollars , known as the " dólar blue " , at higher rates than the official exchange rate . 
