The article summarizes recognized empirical knowledge about the causes of currency crises, making use of several extensive empirical studies carried out in the late 1990s, and examines select theoretical models of such causation. The results are divided into three levels of causes: general risk...

In the course of exchange rate development history of the countries taking part and evaluated in ERM or ERM II before they entered the euro-area there was no depreciating evolution with a trend to currency crisis at all. Fundamental indicators of these economies, partly owing to the compliance...