The contagious currency crises

Keti Tskhadadze


The purpose of this paper is to analyze the contagious currency crisis, which is characterized by regional nature. As the changing of the economic circumstances in one country does affect on the other country’s economy, it is important to analyze some direct and indirect effects. The currency crises have a tendency to spread around the country, but the most important thing is to define the instruments by which this transmission takes place. In the article we also analyze the impact of the Russian crisis on Georgian economy.


Currency crisis, currency risk, financial shocks, Georgia, trade openness


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