An economic crisis is typically a rare kind of an event but it impedes monetary stability, fiscal stability, financial stability, price stability, and sustainable economic development when it appears. Economic crises have huge adverse effects on economic and social system. This study uses an...

This paper provides a critical analysis of Kaminsky and Reinhart (1999) (KR), perhaps the most prominent empirical paper on causes of currency crises. After dealing with problems present in this paper, it proposes an aggregate leading indicator of crisis. The proposed indicator performs better...