By proposing a measure for cross-market rebalancing effects, we provide new insights into the different sources of currency crises. We address three interrelated questions: (i) How can we best capture contagion; (ii) Is the contagion of currency crisis a regional or global phenomenon?; and (iii)...

For the classification of industries within a certain country on the basis of their comparative trade advantage or trade disadvantage it is common practise to use the Balassa index. If the value of this index exceeds 1, the concomitant industry is thought to have a comparative trade advantage....