Financial Liberalization and the Asian Crisis The financial crisis that hit a number of miracle economies of Asia in 1997 shocked the world. Financial Liberalization and the Asian Crisis rejects conventional explanations of the crisis as the outcome primarily of inefficient and corrupt economics systems in the countries concerned. It argues that the crisis was the result of premature and overly rapid financial liberalization in a world of increasing financial liquidity and volatility and calls for a more cautious approach to financial liberalization and a reform of the international financial architecture