Question about asian currency crisis

Assignment Help Macroeconomics

Reference no: EM1373379

Question: Regarding the Asian currency crisis, answer the given questions:
[A] Explain the normal reasons why a currency undergoes a significant depreciation and what were important characteristics of Asian countries involved in the crisis?

[B] What are some expected domestic economic consequences of the currency crisis for the countries involved? Focus on:
o import prices of goods and services into the Asian country.
o export prices of goods and services from the Asian country.
o Domestic inflation rates.

[C] Suppose that the countries involved undertake a tight monetary policy and raise interest rates in response to the crisis. What are the two primary reasons for raising interest rates in their case?

[D] Given high domestic interest rates, what is the economic outlook for these Asian countries in the next few years?

Reference no: EM1373379

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