stry confidence. Examples of real shocks include the 1973 and 1979 oil crises and the events of September 11, 2001. These shocks tended to send advanced economies into mild/significant recessions which, when transmitted through the business cycle, affected all economies in varying degrees. Money shocks involve changes in financial variables and good indicators of this happening include the crash of Wall St. in 1987 and the Asian Crisis of 1997. The Asian Crisis caused world GDP to fall 2% in the following year and has left lasting effects on the countries involved in the crisis.
             The Asian Crisis was caused by a collapse of the Thai Baht which triggered increasing uncertainty toward
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