Financial Crisis Essay
Financial Crisis Essay


Analyze economic data on the financial crisis in one of the countries impacted by the Asian Financial Crisis of 1997

You will collect for a country based on the first letters of your last name:

A – D: Indonesia

E – Ma: Republic of Korea (South Korea)

Mc –Pe: Malaysia

Ph – Z: Thailand

You will describe the data identifying general trends or input shifts and explain how those trends are expected to influence the foreign exchange value of a currency. Your essay will be graded on how well you are able to write about macroeconomic trends and their connection to local currency value.



Outline the basics of the financial crisis: when, where, the name of the local currency, plus key events or moments. Reading the Wikipedia article: “1997 Asian financial crisis” will provide you with some general details for each country. Use Wikipedia cautiously, beware of statements that claim to explain why things happened. More useful as a listing of important events and actors.

Use a couple economic indicators to describe how serious the financial crisis was

In essay form, describe the trends and shifts in  macroeconomic data for your country from 1994 to 2003 using the World Bank Databank.

Seven Indicators

  1. Official exchange rate (LCU per US$, period average)
  2. Private capital flows, total (BoP, current US$)

For a and b calculate the percent change from the previous year.

  1. GDP growth (annual %)
  2. Inflation, consumer prices (annual %)
  3. Domestic credit to private sector (% of GDP)
  4. Lending interest rate (%)
  5. Total reserves in months of imports

Be sure to discuss changes in each around the financial crisis.

Use the data from 1998 to 2003 to discuss the economic consequences of the financial crisis.

  • Include table of data from the World Bank as an appendix to your paper. Clean up the exported version to create a proper looking table.