The floating of the Thai baht in July 1997 marked the onset of a period of market turbulence associated with the halting of new funds to and, in most cases, the flight of existing money from, many economies in Southeast Asia.
If all these specific proposals were put in place, there would likely be a significant reduction in the procyclicality of asset prices – particularly the procyclicality that stems from the drying up of liquidity in a period of falling prices and spiking volatility. Conclusion A strong economy requires a sound financial system.