1997 Asian Financial Crisis

1. Explain the origin of this crisis. Give me a summary of this crisis consisting of the reasons of this
crisis and the breadth and extent of the crisis. Identify countries and markets involved in the crisis
(200 words). (2 marks)
2. Explain the effects of this crisis on exchange rate of the involved countries in the crisis. Show your
reasons using the supply and demand curves of exchange rate. Providing a link between your reasons
and the international business finance theories and their relevant concepts (700 words).
(7 marks)
3. Explain the effects of this crisis on other markets of the involved countries in the crisis such as
commodity markets, stock markets, property markets, and etc. What happen for macroeconomic
variables of the involved countries in the crisis such as inflation rate, interest rate, and etc. Since one
of the reasons for this crisis is related to changes in exchange rates, providing a link between changes
in the macroeconomics variables and changes in the exchange rates of the involved countries in the
crisis (700 words). (7 marks)
4. Explain how the involved countries in the crisis recovered their economic condition after this crisis.
The role of government and central bank of the involved countries in the crisis was very important.
Explain their roles in recovering the financial crisis (400 words). (4 marks