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Asian Financial Crisis: Indonesia and the Currency Board Proposal
內容大綱
Indonesia was hit hard by the Asian economic crisis. By October 8, 1997, its currency, the rupiah, was down 60% from its pre-floatation value. The rupiah fell to a historic low of 16,500 against the dollar on January 23, 1998. Capital flight accelerated and social unrest was widespread. On February 4, Professor Steve Hanke suggested to President Suharto that a currency board system could stabilize the currency. While Suharto was highly receptive to the idea, the IMF was not. It threatened to withdraw all its support to Indonesia. It was up to Suharto to decide which way to go.