However, there has been a very significant downside from increased volatility and the many financial crises, in both developed and emerging markets. There has been a very significant lessening of barriers to trade in goods through the reduction and removal of both tariffs and quotas.
The currency crisis then interacted with financial system weaknesses to produce a deep economic recession. And the difficulties in Thailand were rapidly propagated across the region and beyond. From this experience, the most important regulatory consequence to be drawn is the need for rapid strengthening of financial systems.