The article discusses how the global financial crisis can affect the East Asian economy. It shows that in 1997, the East Asian economy was hit hard due to weak economic fundamentals and government credibility. However, by learning from this experience, East Asia was better prepared for the 2008 crisis. The study uses data analysis to compare the impact of the two crises and finds that the 2008 crisis was not as severe as the 1997 crisis on the East Asian economy. This shows that improvements in economic fundamentals and policy credibility helped East Asia minimize the effects of the 2008 global financial crisis.