How Did the Emerging Market Crises in 1997 Contribute to the Global

question 53

Essay

How did the emerging market crises in 1997 contribute to the global crisis in 2007-09?

---

Definitions:

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to a need for borrowing or using saved reserves.

Energy Prices

The cost of purchasing energy sources such as oil, gas, coal, and electricity, which can fluctuate based on demand, supply, geopolitical stability, and environmental policies.

Economic Contraction

A decline in national output as measured by GDP, often leading to higher unemployment and lower spending.