Publication

This report contrasts currency crises in Latin America, Southeast Asia and Eastern Europe. It investigates the links between real exchange rate overvaluation, current account deficit and currency crises, and issues surrounding the choice of an exchange rate regime. It evaluates the optimal level of foreign exchange reserves to avoid currency crises in emerging markets, and offers empirical evidence of the determinants of banking and financial crises. The authors examine the propagation of the currency crisis in Russia, its economic and social consequences and the role of the International Monetary Fund (IMF) in former Soviet economies.