Volume 9, Issue 4, August 2020, Page: 192-201
Lessons from the Experiences of Currency Crisis, Focused on the Cases of Korea, Argentina, Mexico and Greece
Yongshik Choe, Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul, South Korea
Hyun-jung Kim, Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul, South Korea
Received: May 31, 2020;       Accepted: Jun. 15, 2020;       Published: Jun. 28, 2020
DOI: 10.11648/j.ijber.20200904.15      View  286      Downloads  117
Abstract
The currency crisis has happened intermittently in many countries around the world despite numerous studies about it. It might be its reason that the root cause of currency crisis is not clarified clearly yet. The causes well-known are not the root but the phenomena appeared in its developing process. If the root is clarified, the crisis would be prevented in advance. Above all, its resulting economic performance varies greatly from country to country and from time to time, of which reason is due to the differences in economic policies responding to the currency crisis. It is very important to overcome the currency crisis as well to prevent its occurrence because it damages any national economy very much causing economic hardships of its people. In order to prevent and overcome it, it is necessary to investigate its root cause and developing process. And the empirical experiences of the crisis are useful to clarify them. This paper investigates its root cause, economic principle and policy measures to overcome it through case study. In short, the currency crisis has been caused by the economic overheat, leading to a huge deficit of international payment, which has resulted in the soar of exchange rate, causing the depletion of international reserve because of the exchange rate loss which led the capital outflows. And some representative cases of currency crisis are helpful to establish and enact the policy measures to overcome it. If this principle and some cases of the crisis is understood well, it would be possible for any countries, especially for developing countries, to prevent in advance and overcome successfully it. This paper would contribute to the stable growths of developing countries because the root cause of currency crisis, its economic principle, and the policy measures to overcome it are clarified enough.
Keywords
Currency Crisis, Deficit of International Payment, Depletion of International Reserve, Economic Overheat, Twin Crises
To cite this article
Yongshik Choe, Hyun-jung Kim, Lessons from the Experiences of Currency Crisis, Focused on the Cases of Korea, Argentina, Mexico and Greece, International Journal of Business and Economics Research. Vol. 9, No. 4, 2020, pp. 192-201. doi: 10.11648/j.ijber.20200904.15
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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