Currency Crises. A Challenge for Economic Theory and Policy

Globalization and the liberalization of capital movements have increased the fragility of financial markets. The dangers resulting from unstable and crisis-prone financial markets can hardly be over-estimated and deserve the highest attention of economic policy. The latest currency crises in East Asia and Russia, and their manifold causes have therefore drawn renewed interest of academic as well as policy circles to issues of international arrangements to prevent such crises, their efficient management, but also of the architecture of international regulations for financial and capital markets, and of the role of the banks.