1.In the issue of October 23, 1999, the Economist reports that the interest rate per annum is 5.93% in the United States and 70% in Turkey. From what you learned about international finance and macroeconomic factors, please answer the following --

A.In your opinion, what could the possible reasons behind the abnormally high interest rates in Turkey?

B.What are the possible consequences of having such a high interest rate?

2.Questions about the balance of payments:

A.In your opinion, do you think a deficit in the balance of payment hurts the economy?

B.Explain the main causes behind the current account surpluses that Asian emerging economies have maintained during the last two decades