International Capital Markets and Exchange Rate Stabilization in the CIS and East Asia

In 1997-98 a wave of financial and currency crises hit both East Asia and the Commonwealth of Independent States (CIS). Both regions suffered from the collapse of dollar pegs, toppling financial sectors and deep recessions. The following discussion about crisis prevention focused on more flexible exchange rate regimes to avoid misalignments and sharp adjustments of macroeconomic fundamentals (Fischer, 2001).