Which of the following loomed large among the causes of the economic crisis that afflicted Southeast Asia in the late 1990s?

The primary cause of the economic crisis that afflicted Southeast Asia in the late 1990s was currency speculation. This was caused by the weakness of the region’s financial systems and coupled with sovereign debt crisis, excessive bank credit, and corruption. Due to the Asian financial crisis, the value of some of the region’s currencies plummeted against the dollar. This caused investors to begin speculating in currency markets, in an effort to capitalize on the volatility. Furthermore, speculators were attracted by the vulnerability of several Southeast Asian countries’ currencies, which were overlooked by the international markets. As a result, the region suffered greatly from a sudden outflow of sometimes speculative investment capital. These capital movements directly caused currency instability and weak economic policies, resulting in economic stagnation. In addition to currency speculation, the developing Southeast Asian nations’ lack of liquidity, inadequate banking supervision, and rising public debt levels in the countries exacerbated the effects of the crisis.