The Twin Crises: The Causes of Banking and Balance-of-Payments Problems

@article{Reinhart1996TheTC,
  title={The Twin Crises: The Causes of Banking and Balance-of-Payments Problems},
  author={Carmen M. Reinhart and Graciela Laura Kaminsky},
  journal={Monetary Economics: Financial System \& Institutions eJournal},
  year={1996}
}
In the wake of the Mexican and Asian currency turmoil, the subject of financial crises have come to the forefront of academic and policy discussions. This paper analyzes the links between banking and currency crises. The authors find that problems in the banking sector typically precede a currency crisis--the currency crisis deepens the banking crisis, activating a vicious spiral; financial liberalization often precedes banking crises. The anatomy of these episodes suggests that crises occur as… 
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In the wake of the Mexican and Asian currency turmoil, the subject of financial crises has come to the forefront of academic and policy discussions. This paper analyzes the links between banking and
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