Openness to trade is one factor that has been identified as determining whether a country is prone to sudden stops in capital inflows, crashes in currencies, or severe recessions. Some believe that openness raises vulnerability to foreign shocks, while others believe that it makes adjustment to...

In this paper we argue that the main difference between the crises is their degree of anticipation. In particular the Asian crises was widely unanticipated, while the Argentinean and Brazil crises were anticipated.