Prepare Economic Methodology- Thai Financial Crisis 1997
Question 1: What is the main question you would like to answer?
The main question our paper will look to answer is whether the Thai Financial Crisis of 1997 could have been prevented if Thai financial regulators would have paid attention to the speculative attack that forced the Mexican economy to experience an exchange rate crisis only years earlier, thereby foreseeing the vulnerable state of their own economy and neutralizing the impending speculative attack that indeed struck.
Question 2: Why do you think your question is relevant? What is your hypothesis? How is your angle different/complementary to what has been done?
The question at hand poses a relevant topic of discussion because of its connection to the Asian Financial Crisis of the 1990s. The Thai exchange rate Crisis essentially jump-started the economic contagion that affected much of Southeast Asia and South Korea. If Thai financial regulators and bank administrators would have foreseen the impending speculative attack that shook their economy and led to the massive depreciation of their local currency, they very well may have prevented the Asian Financial Crisis in its entirety.
The hypothesis our paper will look to prove whether the Asian Financial Crisis of the late 1990s could have been averted had Thai financial administrators paid mind to the similarities between the state of the Thai economy and the Mexican economy during their respective reigns of prosperity and capital inflows, foreseeing a speculative attack similar to the one that ravaged the Mexican economy and adjusting their policies accordingly.
The specific angle our paper will approach the issue at hand from differs from past research methods simply because it introduces an antecedent to any of the financial crises that took place in Asia throughout the 1990s. Rather than attempting to justify whether the Thai financial crisis indeed set off the Asian Financial Crisis in its entirety, our paper introduces a third party participant that underwent an economic upswing and a grueling subsequent downturn similar to that of Thailand. As a result, our analysis poses a fresh, outside-the-box perspective with a range of puzzling questions waiting to be answered, and more importantly, presents financial crises as a universally interconnected phenomenon, applicable to all economies regardless of location or political philosophy.
3. Methodology: how are you going to test the hypothesis: using a simple model, data analysis
4. Literature: all references used for the proposal
