To "cure" their balance of payments deficits without altering exchange rates, Southeast Asian countries in 1997 were forced to create

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To cure their balance of payments deficits without altering exchange rates, Southeast Asian countries in 1997 were forced to create recessions. This is because in order to reduce their current account deficits, they needed to decrease their imports, increase their exports, and attract foreign investment. This typically requires policies that reduce domestic demand, such as decreasing government spending, tightening monetary policy, and increasing interest rates, which often lead to a recession or slow economic growth.

To "Cure" Their Balance of Payments Deficits Without Altering Exchange