The Asian financial crisis of 1997 generated a plethora of research that analyzed the causes of the crisis.

The Asian financial crisis of 1997 generated a plethora of research that analyzed the causes of the crisis, unless less attention has been paid to the aftermath. for what cause long do crises last and to what reach does output recover? Although there is copious evidence that a financial crisis induces a recession, the literature has not examined whether a recession following a crisis permanently lowers the horizontal of output. This paper analyzes whether the output reduction after the Asian crisis was a temporary deviation downward from the incline level that was eventually revers as output

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