The Age of Crises (1980–2000): The Schumpeter Moment

The Age of Crises was an especially tumultuous time for EMEs. The entire EME world was engulfed in a severe economic and financial crisis of unprecedented intensity and scale, not seen since the Great Depression. The crises were triggered by significant external financial shocks, with the Fed's aggressive monetary tightening cycle being the most notable. However, there were also underlying reasons for the crises, primarily domestic policy failures that led to significant financial and economic imbalances. Despite the damage caused by the crises, they also served as catalysts for significant economic change and restructuring, forcing EMEs to adopt a more robust set of economic policies and seek greater integration with the global economy. This process unleashed substantial economic potential that carried into the new millennium.