Financial Crisis in the MIT Countries: Myths and Realities

The paper seeks to unfold some of the popular myths and realities concerning the recent financial crisis in the MIT (Malaysia-Indonesia-Thailand) countries. In this connection, it also analyses the various models of speculative attacks and their applicability, and the systemic implications of the financial crisis for these countries. The paper comes out with the fact that it is the macroeconomic vulnerability which is fundamentally responsible for the financial crisis in the MIT countries.