Volume 46, Number 1 · January 14, 1999
The International Crisis: An Interview
By George Soros, Jeff Madrick
In July of 1997, the currency of Thailand, the baht, fell precipitously in value when the government abolished the link it had long maintained to the US dollar. The fall in the value of currency spread to other nations in Asia, including Singapore, Taiwan, Malaysia, the Philippines, Indonesia, South Korea, and Indonesia. As this happened, there was a dramatic outflow of capital from these nations. Investors generally feared that Asian companies would no longer be able to meet the enormous volume of their debt obligations denominated in US dollars and other foreign currencies. The financial turmoil threatened even such economic powers as Hong Kong and China.
Feature, 6151 words
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