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(Cameron 1999) The crisis, which worked its way through many of the South East Asian countries, was signified by the collapse of the Thai baht in the middle of 1997. During the second half of the year, the Indonesian central bank attempted to hold off pressure on its currency, the rupiah. Interest rates quadrupled and the rupiah depreciated by about 60%. In January 1998, the rupiah collapsed. It lost about 75% of its value in a matter of a few days. The collapse of the rupiah was followed by spiraling prices; annual inflation was estimated to be about 80% for 1998. (Fallon 1999)
The impact of the crisis in Indonesia was not confined to the financial sector...
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