Speculative attacks and Currency crises

Abstract

Currency crises can prove to be extremely detrimental to countries 'economies and citizens' living standards. Governments should take steps to keep their fiscal and macroeconomic ratios in order and should exercise strong oversight and control over the condition of financial institutions to eliminate the possibility of a banking panic. The role of the International Monetary Fund is also crucial, in order to strengthen the countries that are facing unforeseen negative situations, provided that they themselves will take measures that will allow the countries to have stability and long-term development.