Journal Press India^®

Author Details ( * ) denotes Corresponding author

Purpose: The present research attempts to analyse the situation where a vulnerable financial structure leads to a crisis. It critically analyses the causes and lessons of the Asian financial crisis of 1997-98 focussing on the crucial trigger factor. Design/Methodology/Approach: The methodological approach of this research study is descriptive and the data obtained various secondary data sources in thematic form. Findings: Lessons from recent financial and economic crises such as the Asian crisis in 1997-98 proved that a sub-optimal financial structure may be necessary but not sufficient condition in itself for a crisis. Research Limitations: The main limitation of the study was that the data was based only on secondary sources. Managerial Implications: The role of financial structure of an economy in maintaining economic stability and representing a forceful manifestation of the vulnerability of the economics profession, commercial businesses, international financial organisations and the banks in predicting and if possible, preventing the economic turmoil associated with the crisis. Originality/Value: This study showcased the original work of the authors in the field of Asian Crisis and the financial structure in India.

Keywords

Currency crisis, Vulnerability, Moral hazard, Asian crisis, Financial reforms

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