Inter FIN

Running Head : International Finance

International Finance

[name of the writer]

[name of the institution ]

[name of the Professor]

[Course] International Finance

1 . Write a memo describing the recent Asian currency crisis . The body of the memo should be no more than two pages double spaced in length You may include a bibliography on a third page . The memo should include a brief chronology of the event , a discussion of the theories as to why the crisis happened , and some discussion of what the worldwide financial institutions (such

as the IMF ) may do to ensure that it does not happen again . This is a group project so each member of the group should only need to write a paragraph or two on any given aspect of the event

Answer

The Asian financial crisis started in Thailand in July 1997 , and quickly spread to most countries in Southeast and East Asia . When the crisis started the average GDP growth rate had declined from 8 .2 percent in 1995 to 6 .1 percent in 1997 . Before , the crisis these Asian economies were growing rapidly , as they were opening up their economy to attract foreign inflow . They closely aligned their currency to the US dollar to attract foreign investment . Furthermore , the financial service sector was allowed to grow without imposing many regulations (Goldstein , 1998

Causes of the Financial Crisis

Although the main causes differ from economy to economy , but the general causes of the financial crisis were that (Goldstein , 1998

There was local...