The internet user began to increase in number greatly from the

mid-1990s. They were seen by companies as potential

consumers.
Immediately, businesses saw the internet as a significant profit
opportunity.
The retailer amazon.com became the first online book retailer in
1994. Ebay was started in 1995 as an online auction site.
As the internet became increasingly commercialized, many
online businesses and their founders became rich.
Impact
the nasdaq further plunged to 800 by 2002.
the price of the stock of microstrategy fell into 4
Dollars from 3500 dollars per share.
in 2001, the u.s. Economy experienced the
Dotcom bubble recession.
many people lost a significant portion of their
Savings, if they had invested in tech stocks.
Companies could cause their stock prices to increase by simply
adding an e- prefix to their name or a .com to the end,
which one author called prefix investing.[2] A combination of
rapidly increasing stock prices, market confidence that the
companies would turn future profits, individual speculation in
stocks, and widely available venture capital created an
environment in which many investors were willing to overlook
traditional metrics, such as P/E ratio, in favor of basing
confidence on technological advancements.
The collapse of the bubble took place during 19992001. Some
companies, such as pets.com and Webvan, failed completely.
Others such as Cisco, whose stock declined by 86% lost a
large portion of their market capitalization but remained stable
and profitable. Some, such as eBay.com, later recovered and
even surpassed their dot-com-bubble peaks. The stock
of Amazon.com came to exceed $700 per share, for example,
after having gone from $107 to $7 in the crash.[3]
Impact on Indian Economy
India also experienced an impact of the dot-com bubble
as majority of its technology and internet sector companies'
stock prices fell. However the Indian IT companies were not
wholly based on the US market and also these companies had
sound business principles and a viable business model. So the
Indian economy faced little trouble from the dot-com bubble
comparatively and was able to recover easily.

During the first half of the 2000s, both monetary and fiscal
policies remained expansionary. Despite concerns about fiscal
unsustainability, macroeconomic conditions remained conducive
without necessitating any reversals of accommodative policy
stance until the inception of the crisis in August 2007.
Causes
Investors in Wall Street started taking note of this unusual
exponential growth in this thing called the internet. Further
more, companies like Netscape and Yahoo! went in for IPOs that
were hugely successful. Netscape, for example had its share
price go from $28/share to $75/share on the first day itself.
Main cause :- the expectation on .com companies increased
making the stock price on internet sector rise rapidly.
Asian financial crisis
Causes
The devaluation caused debt to be even more difficult to repay
and countries started to default

Poor Regulation of the Economy

Over-Inflated Asset Prices
Macroeconomic Policy: Fixed Exchange Rates
Devaluation

Overvaluation of the Currency

Massive Current Account Deficits
Inflows of Short-Term Foreign Capital
Failure of Financial Institutions
Selling Pressure from Speculators