In the context of the 1997 Asian crisis, how did the International Monetary Fund's "one-size-fits-all" approach to macroeconomic policy affect South Korea?
A) It led to a decrease in the interest rates of short-term loans.
B) It made it difficult for companies to service their excessive short-term debt obligations.
C) It decreased the probability of widespread corporate defaults.
D) South Korea failed to recover from its financial crises.
E) South Korea was forced to increase restrictions on foreign direct investment.

Question

Quizplus · Accepted Answer

The IMF's approach often involved high interest rates and fiscal austerity, which made it difficult for South Korean companies to service their short-term debts, exacerbating the crisis.

In the Context of the 1997 Asian Crisis, How Did