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 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
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

Abstract
The paper identifies the parallels between the sequence of economic crises in Argentina in the beginning of this century and the 1929 Great Depression of the United States. The paper goes on to explain how Argentina addressed this financial disaster through rapid re-structuring of its debt and through restoring the valuation of their national currency, the peso. The paper discusses the lessons learned from this painful time in Argentina's history and highlights how they illustrate how brutal the effects of economic downturns can be on nations in the 21st century. The paper also points out that the skyrocketing interest rates, depth of GDP drops and the immediate and severe impacts on the citizens of the country demonstrate how critical it is to define economic strategies more aligned with stable monetary policies. The paper includes two tables of key economic indicators for Argentina and Argentina's demographic profile as appendices to the paper.

Outline:
Introduction
Understanding Argentina's Economic Crises
Effects of Economic Crises on Argentina in the 21rst Century
Conclusion

From the Paper
"There are many parallels between the sequence of economic crises in Argentina in the beginning of this century and through 2002 - 2003 timeframe and the 1929 Great Depression of the United States. First, both nations experienced bank runs where depositors demanded all of their assets. Argentina dealt with its most major crises by emulating the strategies used during the Great Depression in the United States. According to the Emergency Banking Act of March 9, 1933, the President of the United States, who was Franklin Delano Roosevelt at the time, could define the standard price of gold and further define the use of gold as the standard for currency. The Emergency Banking Act of 1933 set the price per ounce of gold at $35, which served to underwrite the American dollar by 59.6% (Friedman, Schwartz, 1963). This immediately accomplished two critical tasks. First, it alleviated a rush to hoard gold as the most valuable medium of exchange, which could have plunged the U.S. into a far deeper depression and potential re-ordering of its political foundation. Second, it placed gold as the basis of the U.S. dollar, stabilizing its value and giving the Treasury the authority to enforce the amount of gold held by individuals for purposes of trade (Friedman, Schwartz, 1963)."

Tags:FDI, GDP, peso, dollar, exports, trade, IMF

Abstract
This study applies ordinary least squares (OLS) estimation procedures, with and without lags, to identify the causes of currency crises in selected economies during the 1997-98 East Asian currency and financial crisis. The author states that the cause of the crisis was attributed to initial macroeconomic conditions, weak macroeconomic fundamentals, financial sector regulation, and policy reaction. The paper relates that the empirical results were consistent with previous literature on currency crises; episodes of depreciation appear to be associated with the depletion of foreign exchange reserves and the increase in foreign liabilities. Equations. Tables.

Table of Contents
Introduction
Classical Theory
Empirical Research Explaining Currency Crisis
First Generation Models
Second Generation Models
Third Generation Models
Policy Reactions and the Role of the IMF
Conceptual Model
Initial Conditions
Deterioration of Macroeconomic Fundamentals
International Sector and Financial Regulation
Macroeconomic Policy
Ideal and Actual Data
Measuring the Symptoms
Measuring Currency Crisis
Actual Data
Results and Analysis
Conclusion
Appendix I: Summary of Data and Indicators Used in Previous Studies
Appendix II: General F-Tests
Appendix III: Statistical Analysis for Multicollinearity and Heteroskedasticity
Appendix IV: E-views Output of Granger Causality Tests

From the Paper
"Although Korea, the Philippines and Thailand followed the classic prescription of raising their interest rate to defend their currencies, all three saw continued depreciations, well in excess of what would be predicted by the currency crisis models Furman and Stiglitz (1997). From a policy perspective, Goldfajn and Gupta (1998) look the real exchange rate "undervaluation" episodes in 80 countries following the crises to assess whether tight monetary policy brings about a recovery in the real exchange rate through a nominal appreciation of the exchange rate. They find that in their total sample, tight monetary policy increases the probability of recovery by about 10 percentage points. But among countries undergoing simultaneous banking and currency crisis, as in East Asia, tight monetary policy is associated with roughly 10 percentage points lower probability of success. Both of these differences are statistically significant."

Tags:theory, ols, lags, reserves, liabilities

Abstract
This paper examines the collapse of the Mexican peso in 1994-95, and the impact of related economic crises before and after this development. The author analyzes the failure of the risk assessment process, identifies economic variables that respectively did and did not accurately indicate the possibility of the peso's collapse and compares the views of a number of economic experts on these issues. The paper then explores what lessons can be learned from the collapse of the peso, and how future currency crises may be averted.

Abstract
This document discusses several questions related to international banking and finance. Some of the issues discussed are related to the character of the global economy and how its financial mechanisms are now interconnected. Additionally, some of the developments related to globalization are examined. And finally, the various aspects of the Asian and Mexican currency crises are examined with a view to the global financial markets that enabled them.

Table of Contents:
Abstract
Consolidation of Financial Markets
Outsourcing and Offshoring
The Asian and Mexican Financial Crises

From the Paper
"In the same way that the Asian financial crisis played out in individual markets such as South Korea, the Mexican currency crisis also began during a period when there was actually much promising economic outlook. During the 1980s the Mexican government liberalized its trade sectors and during the early 1990s had brought its inflation under control to below 10% which was good for that market. With these and other economic reforms beginning to take effect in the country, Mexico's economic prospects appeared strong."

Tags:merge exchanges accountants, free trade, devaluation

Abstract
The questions answered are related to the character of the global economy and how its financial mechanisms are now interconnected. Additionally, some of the developments related to globalization are examined. And finally, the various aspects of the Asian and Mexican currency crises are examined with a view to the global financial markets that enabled them.

From the Paper
"This document discusses several questions related to international finance. Some of the issues discussed are related to the character of the global economy and how its financial mechanisms are now interconnected. Additionally, some of the developments related to globalization are examined. And finally, the various aspects of the Asian and Mexican currency crises are examined with a view to the global financial markets that enabled them."

Tags:international, finance, global

Abstract
The process of globalization has gathered momentum, mainly due to the rapid increase in cross-border capital flows stimulated by trade liberalization and rapid diffusion of IT. The IMF spearheaded the issue of freer capital mobility or capital account convertibility in order to spread the benefits of globalization to developing economies. However, a spate of currency crises resulting in sudden capital flow reversals plunged countries that had achieved miracle growth rates with open capital accounts into economic turmoil. This paper reviews the up-to-date performance of India on this front. It analyzes the pre-conditions suggested by Tarapore Committee on full capital account convertibility in India in view of the empirical evidence on each of them. On the basis of these findings, the paper arrives at the extent of preparedness India has achieved towards full capital account convertibility.
The paper includes many graphs and tables.

Paper Outline:
Introduction
Opportunities and Risks of Full CAC
Required Pre-conditions and Achievement on Them
Concluding Remarks
References

From the Paper
"Generally, it is argued that full capital account convertibility is beneficial for the economy but several caveats had to be put after learning lessons from the Asian Currency Crisis of 1997. The general belief before the crisis had been that CAC and complete financial openness ensure efficient allocation of global resources, promote higher growth and discipline the domestic macroeconomic policies. The countries that had capital controls in place escaped the contagion of the crisis, which revealed that Capital controls can be effective".

Tags:diversification, exchange, inflows, portfolio, reserves, roupee

Abstract
This paper discusses Mexican foreign policy from the standpoint of its relationship with the United States and other Central American nations. A brief history of Mexico's foreign policy in the first half of the 20th century is presented, followed by an analysis of current international relations. The paper considers how Mexico's currency crises and current fiscal situation affect its international standing. Finally, the paper examines Mexico's commitment to human rights, citing a recent case against the United States.

Means
Goals
General Objectives
Successes and Achievements

From the Paper
"Until the 1970s, the Central American nation of Mexico had a fairly limited role in international affairs. From the United States' perspective during the early to mid 20th century, Mexico's foreign policy was considered leftist and supportive of internal, revolutionary and nationalistic movements within the Central and Latin American region, rather than directly supportive of United States interests. Mexico was a relatively impoverished nation at this time, however, and was undergoing intensive internal economic rehabilitation. Mexico was not able to support its advocacy of leftist regimes with money, troops, and arms, rather Mexico used the maximum diplomatic might at its means to express its national support or discontent, particularly regarding the leadership of nations within the Central American and Latin American regions."

Tags:Mexico, central, America, foreign, policy, leftist, regimes