Question

What actions were specifically taken by the World Bank in response to the Asian Financial Crisis? What was the purpose and outcome of their responses

Answer 1

The world bank announced 1.2 billion dollar program known as GFRP for food price regulations and annoujced bailouts with higher lending from IFC and IBRD which are subsidiaries of World bank.

Austerity measures were proposed along with counter cyclical fiscal and monetary policy ajd recapitalisation of banks were announced as relief measures to revive the economy.

Outcome were largely positive as currencies stabilised andjob lossess minimised and credit availability maximised which caused an uptick in profits and capital expenditure and thus economic activity gradually grew by 2000 creating higher employment opportunities and better consumption trends.

PLS UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH.