Were bid-ask spreads in the FX market excessive during the Asian crisis?

Bid-ask spreads for Asian emerging market currencies increased sharply during the Asian crisis. The question is whether the spreads were excessive or in line with standard models of bid-ask spreads. Pre-crisis estimates of the models show that spreads during the crisis were in most cases tighter than predicted and there were only a few cases of excessive spreads. The result is largely explained by substantial increases in exchange rate volatility during the crisis and to some extent by depreciating exchange rates. The empirical models have greater explanatory power for emerging market than for mature market currencies.