There is no universally accepted definition of a currency crisis, but most would agree that they all involve one key element: investors fleeing a currency en masse out of fear that it might be devalued, in turn fueling the very devaluation they anticipated. Although such crises—the Latin...

This article summarizes the most salient aspects of papers presented at the Central Bank of Chile’s Tenth Annual Conference “Current Account and External Financing” held in November 2006 and soon to be edited into an upcoming book. Many works were included oriented to improve understanding...