The crises of the mid-1990's hit countries that had, in general, embraced the policies of the Washington Consensus. The pattern was the same in each case. Following financial deregulation, countries enjoyed strong capital inflows and booming stock markets. Some seemingly minor event produced a reversal in market sentiment and a sudden flight of capital, producing an economic crisis. Following the crisis, the International Monetary Fund (IMF) and world markets sought to impose the 1980's package of public expenditure cuts and economic contraction, which only exacerbated the problem. Finally, in retrospect, the victims were blamed for minor divergences from the free market ideal which, before the crisis, had been seen as unimportant, or even praiseworthy.
John Quiggin, Professor of Economics at the University of Queensland writing in Zombie Economics
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