This question considers what happened during the Asian financial crisis between 1997-1998.To answer this question, please treat Asian country as the home country and the United States as the foreign country.All the changes are short-run effects of the change in investors' expectations.Please also provide appropriate diagrams to illustrate your answer and assume that the Asian country initially hada currency peg (fixed rate) relative to the U.S. Dollar.

In early July 1997, investors expected that the Thai Baht would depreciate.In other words, they expected that the Bank of Thailand (Thailand's central bank) would be unable to maintain the currency peg with the U.S. dollar.Please explain and illustrate with diagrams how the investors' expectations affect the Thai money market and the foreign exchange market, which the exchange rate defined as Baht (B) per U.S. Dollar, denoted E_B/$.Assume that the Bank of Thailand wanted to maintain "capital mobility" and preserved the level of its "interest rate."