Meanwhile, official aid from Western governments to the developing world has also declined. The value of money can drop overnight when currencies fall in relation to others. This can be provoked by large-scale currency speculation. In 1997, the Malaysian, Filipino and South Korean currencies fell to record lows as a result of the Asian Crisis. Currency values in Mexico, Argentina and Brazil also fell as a result of the crisis.
Inflation occurs when the value of money falls in relation to the goods it can buy.
2 Forbes , July 6 1998. The Banker , July 1998, London. Also Citicorp News , July, 1998. 7 Noam Chomsky, 'The poor always pay debts of the rich', Guardian Weekly , May 24, 1998. The Economist , 'Towards a new financial system', April 11, 1998.