To confront the turmoil in the Asian financial markets which started in summer 1997, various measures have been taken -- each country BIS Review 12/1998  -5has been adjusting its macroeconomic policy and setting out measures to stabilize the financial system, and international assistance has been provided under the leadership of the International Monetary Fund (IMF).
However, instability remains in the financial and foreign exchange markets of these countries, and uncertainty prevails as to how their economies will evolve under the various economic measures. Today, therefore, I would like to examine the background of the Asian turmoil and its possible impact on the Japanese economy.