This paper considers factors that contributed to the currency crisis and the role of the IME in the crisis. The main common reasons for crises in Thailand, Indonesia, and Korea are(1)Dollar peg regime(2)fragile banking system, and(3)large external short-term debts. However, each country has idiosyncratic reasons. Thailand lost foreign reserves in the defense against attacks by speculators. Indonesia suffered from capital flight due to mistrust of financial and political systems. Korea's problem was like a bank run in the international banking. IMF programs that do not address the crux of the matter were ineffective. In order to prevent another Asian-type crisis, monitoring of short-term capital inflows is essential. Once a crisis occurs, either a large support program(Iender of last resort)or a moratorium(forced roll over)should be considered.
