6  BIS Review 82/2007  nature, in which demand collapsed. In fact, recovery depended on addressing the financial burden of the debts as directly and quickly as possible. The biggest problem that the countries of Asia had was that they had not developed the financial infrastructure needed to provide resilience to swings in mood before becoming more open to flows of international capital.
In drawing lessons, much discussion focused on the difficulty of maintaining relatively inflexible exchange rates in an environment of relatively open capital accounts.