The real lessons of the July 1997 Asian crisis
It taught us that economic dislocations can emanate from the private sector rather than the government budget
Many of the most wildly successful economies in Asia tumbled into a crisis in July 1997. They had to be bailed out by the International Monetary Fund on terms that led to a lot of political angst. India was hit as well. The splendid economic boom after the 1991 economic reforms came to an end, the rupee tumbled and bad loans began to pile up in the banking sector. It took five years for the Indian economy to get back on track.