Question 1 ) A good starting point for exploring the local currencies of the region is look at a financial newspaper, such as the Financial Times. What is the value of the local currencies with respect to the U.S dollar at the moment? Do you think it was wise for the countries government to let the currencies float freely in 1997? Why did they peg their currencies value to the U.S. dollar in the first place? Do you think that the link with the U.S dollar had any effect on the Asian Crisis? Explain.

Question 2) One of the causes of the Asian crisis has been traced back to the devaluation of the Chinese renminbi in 1994, which according to some economics, put a strain on the export led economics of Southeast Asia and eventually made them more vulnerable to the crisis. Do you think this theory is valid? Argue your point with reasons.