In this paper the authors rethink the Asian financial crisis that occurred in 1997-1998 through the relatively new capital account crisis paradigm. They argue that this paradigm provides a much more appropriate perspective to frame the questions regarding causes, cures, and preventive measures raised by the Asian crisis, and that it provides a more persuasive explanation for the greater-than-expected severity of the crisis than that which would have been expected from an analysis based on the traditional current-account mode of thinking. he authors conclude that, just as the Great Depression was a tragic testament to the failure of the political process to yield economic policies appropriate for sustaining the economy on a potential growth path, the Asian financial crisis may also be so construed.