The East Asian crisis, which occurred in the fastest-growing region globally, stands out for its severity and duration. It involved simultaneous currency and banking crises, leading to significant economic contractions and prolonged negative growth. Financial crises are not solely exogenous but are often exacerbated by factors such as exchange rate overshooting, foreign capital withdrawal, and internal credit crunches. The crisis has become more frequent, with a "boom in busts" noted by Gerard Caprio. The East Asian crisis differs from previous crises in several ways, including rapid financial liberalization without adequate supervision and regulation. The pursuit of rapid capital account opening and financial market liberalization without proper oversight contributed to the crisis. The failure of international rescue packages and the deep economic contraction in countries like Indonesia highlight the challenges faced by policymakers. The crisis also raises questions about the effectiveness of high-interest rate policies in defending currencies and the role of transparency in financial crises. The East Asian miracle, characterized by rapid growth and poverty reduction, was followed by a dramatic decline, with poverty rates potentially rising from 30 million to 60 million in affected countries. The crisis has led to a reevaluation of the region's past successes and failures, emphasizing the need for better regulation and supervision in financial systems.The East Asian crisis, which occurred in the fastest-growing region globally, stands out for its severity and duration. It involved simultaneous currency and banking crises, leading to significant economic contractions and prolonged negative growth. Financial crises are not solely exogenous but are often exacerbated by factors such as exchange rate overshooting, foreign capital withdrawal, and internal credit crunches. The crisis has become more frequent, with a "boom in busts" noted by Gerard Caprio. The East Asian crisis differs from previous crises in several ways, including rapid financial liberalization without adequate supervision and regulation. The pursuit of rapid capital account opening and financial market liberalization without proper oversight contributed to the crisis. The failure of international rescue packages and the deep economic contraction in countries like Indonesia highlight the challenges faced by policymakers. The crisis also raises questions about the effectiveness of high-interest rate policies in defending currencies and the role of transparency in financial crises. The East Asian miracle, characterized by rapid growth and poverty reduction, was followed by a dramatic decline, with poverty rates potentially rising from 30 million to 60 million in affected countries. The crisis has led to a reevaluation of the region's past successes and failures, emphasizing the need for better regulation and supervision in financial systems.