Abstract
This paper reviews ten articles on the currency crises of the past 20 years. The paper examines the global impact a crisis in one country or area has on the world, such as the Asian currency crisis of the 1990s, and discusses the notion that currency crises are self-fulfilling. The paper also looks at whether currency crises are predictable.

From the Paper
"Currency crises have gained much attention in the past years because they have apparently occurred with greater frequency than in the past or perhaps because the global nature of today's financial markets make a currency crisis in one nation a concern around the world. Increasingly, currency stability is of interest to more than just economists and policy makers, with companies and individual investors noting the movement or stability of various currencies with interest .These are not necessarily new stakeholders with regard to..."

Tags:Currency crises, currency crisis, literature review

Abstract
This document discusses the Euro markets within the European Union vis-a-vis the Euro currency. The paper examines the currency itself, its management, as well as the individual markets. Finally, the paper makes several observations regarding the macroeconomic impact of the euro as well as how companies utilize currency markets for competitive advantage. The Euro is now considered a hard currency.

From the Paper
"Familiarity with the Euro currency markets is vital in the current global market. The implementation of the Euro currency required careful and lengthy planning. The exchange rates at induction of the Euro was particularly problematic considering the sheer variety of national currencies that were being converted over and the variance of existing exchange rates whereby a complex system of triangulation between currencies, exchange rates, and fixed rates (Mundell, 2003). Thus, on January 1, 1999 the Euro was introduced to the national economies of the member states of the EU in 11 of the 12 countries. However, this was just a partial introduction since Greece failed to meet the strict requirements which involved deficits: "On January 1, 1999, the Euro will become the official currency for banking purposes of 11 of the 15 member states of the European Union..." (Walker, 1998, para.6)."

Tags:euro, global, currency

Abstract
This paper defines derivatives as financial instruments such as options, futures, forwards and swaps that are derived from their underlying currencies. The returns on derivatives are tied to yields of these underlying securities and currencies. This paper details the essential role the derivatives market plays in the global economy in countries such as Asia, Germany and Switzerland, in which these economies reap substantial growth rates due to these financial practices. The writer contends that with the presence of this market the financial condition of business entities are stabilized and secure from the possibility of hedge currency risks. The derivatives market also decreases the amplitude in the fluctuation of spot prices and promotes optimal funds placing. The writer stresses the importance in the implementation and development of the currency derivatives market as a necessary prerequisite for the growth of international trade volume, expansion of foreign investment and for the general development of economy.

Table of Contents:
Abstract
Currency Derivatives Operations in the World Economy
References

From the Paper
"Derivatives market in Ukraine was operating from 1994 to 1998. Unfortunately, its work was far beneath the world standards. From the very beginning the Ukrainian market was developing as an exchange market, despite the fact that the world derivatives development gained the incentive to growth from over-the-counter form of these instruments. Hedgers, a category of market subjects, almost did not participate in the activity of Ukrainian currency exchanges, and the absence of hedgers makes the market non-balanced and not liquid. Moreover, the world financial crisis of 1997 caused the collapse in currency markets. The National Bank of Ukraine made a decision to hold up and later to abolish the functioning of currency derivatives in Ukraine. We would like to underline that despite the crisis in the Russian market, the operations with currency derivatives were not stopped, but continued to develop."

Tags:economy, business, interest, rate, foreign, investment, currency, stocks, funds

Abstract
This document discusses currency crises and utilizes the Asian financial crisis of 1997 to 1998 and the Mexican peso crisis of 1994 as illustrative examples. The writer explains that the Asian financial crisis began in Thailand with the sudden devaluation of the Thai baht but is unique in that it spread to many other Asian markets. Therefore it is useful to examine this example from the perspective of its development and impact on a single market and the South Korean economy is used as an example. The writer discusses that the Mexican peso crisis of 1994 was isolated to that market and was triggered by the sudden devaluation of the peso and made worse by the fact that Mexico had established little of the necessary safeguards and reforms to stabilize the currency during its adjustment period following devaluation. The writer concludes that in both of these examples, the currency crises were precipitated by sudden capital flights out of the markets in question which exacerbated the devaluation of the currencies.

Tags:currency, crises

Abstract
The paper provides the background of the 1997 Asian currency crisis and explains the five main causal factors. The paper then explores the effects of the Asian currency crisis on the Asian economic paradigm and concludes by relating that major hindrances still remain in the banking system.

Outline:
Main Explanations of the 1997 Asian Currency Crisis
Implications of the Crisis for the Asian Economic Paradigm

From the Paper
"The Asian currency crisis started in two phases of currency depreciations which were underway since the initial part of summer of 1997. The first round was marked by a steep decline of the Thai Bhat, the Malaysian Ringgit, the Philippine Peso and the Rupiah of Indonesia. Following the stabilization of the currencies, the second round set off with downward pressures hitting the Taiwan dollar, Won of S. Korea, Singaporean and Hong Kong Dollar. The governments of these nations had countered weakness in their currencies through the process of selling foreign exchange reserves and raising interest rates that in effect rendered economic growth sluggish and have made interest-bearing securities more appealing compared to equities. The currency crises also brought to light acute problems within the banking and financial sectors of the burdened Asian economies. (Nanto, 1998)"

Tags:currency, foreign, exchange, rates, interest, investments, liabilities, debt, policies

Abstract
This eight page paper examines hedging currency risks. The author notes that in critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, the writer points out that in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term.

From the Paper
"In critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, "in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term". But this view is not universal by any means, for more than sixty-percent of the respondents in this survey believed that hedging currency risks "can have a short-term effect on volatility. Despite this reservation, 79% say they would allow fund managers to carry out hedging operations"."

Tags:hedging, currency, risks

Abstract
In this article, the writer discusses the adoption of the Euro as the universal currency by a subset of the member states of the European Union (EU). The writer examines the costs and benefits of the single currency, the Euro, for European nations.

From the Paper
"Monetary union is a component of the regional integration of nations. The adoption of the euro as the universal currency by a subset of the member states of the European Union (EU) together with the establishment of the European Central Bank (ECB) established monetary union for this subset of EU states but not for the remaining four member states of the EU. Adopting the euro as its currency is not the sole option of a member state ..."

Tags:Euro, EU, European Union, currency, monetary union, EMU

Abstract
This paper looks at the currency crisis in Thailand, which started in the summer of 1997 and rapidly engulfed a number of East Asian "Tiger economies" in a major financial crisis. This crisis became a an interesting case study for economists who were interested in analyzing the pros and cons of globalization and laissez faire market economies. The author further examines the effects of the East Asian currency crisis, on Thailand itself, which underwent a painful re-adjustment of its economy.

Outline:
Background
The Danger Signals
Foreign Exchange Reserves
Current Accounts Deficit
Excessive Credit Expansion
Why Did the Growth Slow Down?
The Housing and Real Estate Bubble
The Stock Market Bubble
The Crisis
The Aftermath of the Crisis for Thailand
Conclusion

From the Paper
"The country took a number of measures to attract foreign capital during the 1980 and early 1990s. These included lifting of restrictions on foreign investments, elimination of most barriers on foreign ownership of export oriented industries, granting of tax incentives to foreign mutual funds and investments in the stock market, creation of closed-end mutual funds, and reduction of taxes on dividends remitted abroad (Antczak 40-41). These measures along with a pegged exchange rate policy (i.e., the Thai currency baht was pegged to the dollar and its value rose and fell with dollar's value), and the large differential in interest rates provided comfort to foreign investors who came to Thailand in droves. "

Tags:Thailand, currency, crisis, globalization, Asia

Abstract
The prospect of switching Britain's official national currency to the Euro, and the related issue of whether the country should join the European Union, have certainly inspired much heated debate and a variety of viewpoints regarding possible consequences of these changes. This paper explains that the widespread prevalence, passion and diversity of the public discussion on British currency could be seen as a possible reason for the government's resistance to the Euro, in and of itself. It explains that the United Kingdom is regarded all over the world as a successful, consolidated democracy, meaning that the government represents the interests and wishes of its citizens. The writer further points out that therefore, it seems likely that until the public is assured and convinced that the Euro will result in only positive economic and political changes for both ordinary Britons and the country as a whole, the pound will continue its exclusive monopoly over the British economy for many years.

From the Paper
"The decision of Britain of whether to adopt the euro as their only currency and eliminate the pound completely has been widely debated over the last few years. There are a myriad of good reasons for this; the switch to the euro currency will undoubtedly have various consequences whose benefits and downsides are very debatable. These consequences will certainly affect several of Britain's long-established roots and traditions in aspects of its government such as the economy, of course, but also its political parties, European integration, international relations, citizen participation in the government, and public opinion. Furthermore, economic results of Britain's adoption of the euro will likely include significant modifications in taxation, trade, unemployment, price stability, interest and exchange rates, standards of living, and economic distributional policy."

Tags:blair, britian, british, citizen, currency, economics, economy, england, english, eu, euro, europe, finance, financial, government, k, money, opinion, participation, political, politics, public, tony, u

Abstract
This document discusses currency crises and utilizes the Asian financial crisis of 1997 to 1998 and the Mexican peso crisis of 1994 as illustrative examples. In both of these examples, the writer notes that the currency crises were precipitated by sudden capital flights out of the markets in question which exacerbated the devaluation of the currencies. In essence, the writer maintains that currency crises occur because investors, internal or external, leave a market suddenly and with little prior indication. The writer concludes that regardless of how valid the investor assumption of impending currency devaluation is the fact of their sudden flight from the market always leads to the devaluation they were predicting.

Outline:
Abstract
Currency Crises in Asia and Mexico
Overview
Asian Financial Crisis
South Korean Crisis
Central Bank & OMO
Exchange Rate Behavior
Conclusion
Mexican Currency Crisis
Overview
Build up to Crisis
The Trigger
Conclusion

From the Paper
"Thus, because of the currency speculators, who are typically foreign institutional investors, introduce a degree of risk simply through the size of their investment in a single currency that would not otherwise be there if the speculation was limited to smaller investors. While there are a whole slew of factors that must accompany a genuine currency crisis, in general, a crisis develops as these large institutional speculators perceive a decline in value of the currency and dump their investments en masse. The ensuing devaluation of the currency in question is unsustainable and the event often exposes other fundamental economic weaknesses that were disguised previous to the onset of the currency crisis, such as credit over extension in the market and a lack of foreign capital reserves."

Tags:financial, investors, devaluation, assets