<P> The early 1990s recession saw a period of economic downturn affect much of the world in the late 1980s and early 1990s . The economy of Australia suffered its worst recession since the Great Depression . </P> <P> In October 1987, the international Stock Market Slump saw markets crash around the world . The crisis originated when Japan and West Germany pushed up interest rates, pressuring US rates also to rise, triggering a massive sell off of US shares . Global share prices fell an average of 25%, but Australia saw a 40% decline . 17 of the 18 major OECD economies experienced a recession in the early 1990s . </P> <P> In the 1980s, Singapore Prime Minister Lee Kuan Yew famously predicted that Australia was at risk of becoming the "white trash of Asia" due to high unemployment, inflationary pressures and government debt . At the time of the comments, Bob Hawke was Australia's Prime Minister and he stated that the comment was "not an overstatement". The white trash quote is still used today . </P>

Why were interest rates so high in 1990