The major lessons for us can be summarised as follows: first of all, it is essential to maintain an equilibrium for aggregate demand and supply, and especially to be on guard against the bubbles in the real estate and stock market; second, the structure of external borrowing should be proper and external borrowing by domestic businesses should be well regulated.
Among the policy measures undertaken were the following: •  Fiscal policy was progressively tightened. The fiscal deficit, as a percentage of GDP, fell from over 10 per cent in 1995 to around to 4 per cent in 1997. •  Financial deregulation, which had begun in the late 1980s, was completed and in 1994 the capital account was opened.