ABSTRACT
One o f the puzzling phenomena recently had been the sudden drop o f external confidence in five Asian economies: South Korea, Indonesia, Malaysia, Thailand and the Philippines. This lack o f faith spread in varying degrees to other ‘miracle economies’ like Singapore, Taiwan, and Hong Kong. The abrupt change in fortunes was shocking because even as late as June 1997, policy makers and economists were trying to imitate these miracle economies. Now, the attempt is to learn how to avoid such a pointed discontinuity in economic performance.
