The Cuban leadership’s initial approach to deal with the economic crisis was reactive. This sparked the Great Recession, the most-severe financial crisis since the Great Depression, and it wreaked havoc in financial markets around the world.

Though the crisis is generally characterized as a financial crisis or economic crisis, what happened in 1997 and 1998 can also be seen as a crisis of governance at all major levels of politics: national, global, and regional. Financial crisis: Recession to be 'worse than the 1990s', experts warn Families must prepare themselves for a recession which could be deeper, more … The Philipines also had a sound economy when compared to other East Asian economies.

It can be observed that all five countries exhibited a negative current account indicating that they operated current account deficits throughout the five year period leading up to the crisis. As a result, large inflows of capital and a depreciation of international reserves were required to reduce finance the deficits (Bird and Rajan, 2000). The influx in capital led to an increase in the country’s current account deficit over the period 1992-1995 as wel as declining exports.

Thailand showed the worst economic performance as evidenced by its largest current account deficit which kept widening with time.The objective of this paper was to identify the root causes of financial crisis in the 1990s. Korea however had a positive figure of 0.3% in the year 1993. What Can we conclude? Alice D. Ba is an associate professor of political science and international relations at the University of Delaware. Moreover, most of the countries involved in the crisis were operating a semi-pegged exchange rate regime, which also contributed to the currency crisis.Significant movements in the Thai Bhat meant that the currency could no longer sustain its value. In contrast with neoliberal theorists who focused on technical questions, however, critics of neoliberalism focused on political and power structures underlying the international Mostly, the widely held perception that IMF prescriptions did more harm than good focused particular attention on the IMF and other global governance arrangements. That one lasted two years, but this one could go on for four or five years." This increases the financial risks of both the private and public sector, which eventually result in a financial crisis.Bird, G. and Rajan, R. S. (2000) “BANKS, FINANCIAL LIBERALISATION AND FINANCIAL CRISES IN EMERGING MARKETS”, available online at: http://www.freewebs.com/rrajan01/liberalfull.pdf , accessed: [8th January, 2012].Bisgnano J. The American housing market presented another sign of weakness, as in the second half of the 1980s a large number of savings and loan associations (private banks that specialized in home mortgages) went bankrupt. Recent literature classifies the Nordic crises in Norway, Sweden and Finland in late 1980's and early 1990’s among the Big Five crises that have happened before the current crisis, which is now of a global nature. This sparked the Great Recession, the most-severe financial crisis since the Great Depression, and it wreaked havoc in financial markets around the world. Given that most of these countries suffered trade deficits, the capital was spent mainly on infrastructural development which means that enough returns could not be realized to cover the current account deficits. The Bank of England will have to cut interest rates to 2 per cent or risk the recession becoming not just very long but very deep."

Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox.Articles from Britannica Encyclopedias for elementary and high school students. In the late 1980s and early 1990s, most developed and developing economies liberalised their financial systems and removed a number of regulations regarding the movement of funds.

The "Reagan boom" rested on shaky foundations, however, and as the 1980s progressed signs of trouble began to mount. The fall was more than twice as much as expected, and prompted experts across the City to warn that the UK is now almost certainly heading for a 1990s-style recession, with soaring unemployment, widespread negative equity, falling house prices and slumping profits. Indeed, the majority of City experts now anticipate that the economy will suffer a similar experience as it did in the early 1990s, with the recession lasting for almost two years "if we're lucky," according to Michael Saunders of Citigroup. This strategy increased the gearing of many foreign and local borrowers. 1990-92 Early 1990s Recession. In particular, the Asian financial crisis revealed the Debates about the causes of the financial crisis involved competing and often polarized interpretations between those who saw the roots of the crisis as domestic and those who saw the crisis as an international affair. During This period, many East Asian economies also made significant efforts to liberalise their domestic financial systems as well as the capital account balance of payments. The problem we have now that we didn't have in the early 1990s is that the banking sector is bust, or close to it.