While because they needed more cooperation such as

While the Asian economic was facing a financial crisis in 1997, which
it was located in Thailand due to the Baht unfolded. However, this problem was
not only the regions’ economic stuck, but it was spread out wildly to the
worlds’ economics. For those countries, which fail deeply onto the crisis were
likely needed the convention from the international level throughout
International Monetary Fund (IMF). The IMF’s original objective was to measure
how affectively their works were “To promote international cooperation; to
facilitate the expansion and balanced growth of international trade; to promote
exchange stability; to assist in the establishment of a multilateral system of
payment; to make its general resources available to its member experiencing
balance of payment difficulties under adequate safeguards; and shorten the
duration and lessen the degree of disequilibrium in the international balance
of payments of members1”.
According to this, IMF plays an important role in stabilizing the exchange rate
throughout Southeast Asia. There are three main components to deal with the
crisis. 
First, there was financing support. IMF had initiated a US$35 billion program to
stabilize the currencies in the countries, which most affected from the crisis
such as South Korea, Indonesia, and Thailand. Second, there were macroeconomic
policies. Within this policy, how money was used within the countries were
regulated tightly because the primary goal was to balance the currencies
between the three countries that used the money from the bank. Third, there were structural reforms.
Korea’s GDP decreased by 7 percent in 1998, Thailand decreased by 6 percent,
and Indonesia decreased by 14 percent. Under this reform, the IMF tried to
intensify its consultations with other countries by arranging a stand-by
facility so that it could improve the crisis and providing policy advice. This
got a help from China that its exchange rate against the U.S. dollar should be
held stable.

             Even though there were three stages to deal
with the crisis, they were not successful because they needed more cooperation
such as the World Bank and Asian Development Bank. The factors that failed the IMF were the failure to
control the domestic investments, the unbalance of imports and exports as well
as the increase and decrease of the currencies; however, the three nations
tried so hard to invent more tourists’ investments as well as export more than
import to boost the economies.

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1:
www.economicsdiscussion.net/international-monetary-fund/
international-monetary-fund-imf-origin-objectives-and-fuctions/11840. Retrieved
on 9th January, 2018. 

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