Inefficient financial systems?
1.The Asian financial crisis in the 1990s.
Significant economic growth in several Asian countries was mainly funded by short-term loans from overseas. A financial crisis occurred when this growth bubble burst.
The countries lacked adequate banking and financial sector supervision and most of them had a fixed exchange rate.
a)What is a problem with short-term loans?
b)Why should banking and financial sectors be supervised?
c)Why could a fixed exchange rate make the crisis worse?