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Why did the crisis put upward pressure on interest rates

Why did the crisis put upward pressure on interest rates 


1.	The Asian crisis showed that a currency crisis could affect interest rates. Why did the crisis put upward pressure on interest rates in Asian countries? Why did it put downward pressure on U.S. interest rates?


2.	It is commonly argued that high interest rates reflect the expectation of high inflation. Based on this theory, how would expectations of Asian exchange rates change after interest rates in Asia increased? Why? Is the underlying reason logical?



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16 Apr 2016

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    Why did the crisis put upward pressure on interest rates

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