Explain why investors behaved in the given manner

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IFE application to Asian crisis. Before the Asian crisis, many investors attempted to capitalize on the high interest rates prevailing in the South East Asian countries although the level of interest rates primarily reflected expectations of inflation. Explain why investors behaved in this manner. Why does the IFE suggest that the South East Asian countries would not have attracted foreign investment before the Asian crisis despite the high interest rates prevailing in those countries?

Reference no: EM13935889

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