Final answer:
The international community provided bailout and relief packages during the Asian Financial Crisis to stabilize affected economies. This intervention was necessary to prevent further economic decline, illustrating the interconnectedness of global financial markets and the role of cooperative economic policies.
Step-by-step explanation:
The Asian Financial Crisis in the late 1990s was a significant economic downturn that affected many East Asian countries. International communities, recognizing the interconnectedness of global financial markets, organized large bailout and relief packages to stabilize these economies. Countries experienced a rapid outflow of capital which caused their economies to collapse. This necessitated an international response to reduce capital flight and stimulate investments in the affected regions. While the United States did not need to secure an exchange rate, it had the unique ability to bail out large corporations during its own economic crises, demonstrating what some refer to as American economic exceptionalism. The international bailouts during the Asian financial crisis and also during subsequent crises, like the Global Financial Crisis of 2008, demonstrate how financial markets and economies globally are deeply interlinked.
During the Asian Financial Crisis, international bodies and countries understood that the failure to address the crisis could have severe global economic repercussions. As a result, large bailout packages were indeed organized. These relief efforts were essential to aid the East Asian region and prevent a deeper global economic fallout, which underscores the importance of cooperative economic policies in our global economy. Hence, it is true that the international community organized large bailout and relief packages to aid the East Asian region during the crisis.