<p>I'm just curious whether there are any historical examples of a currency crisis in a country (speculative attacks leading causing a sudden devaluation of currency) leading directly to a debt crisis? </p>

CC BY-SA 3.0
2018-03-21T21:08:35.923Z
The term “currency crisis” is somewhat vague here - do you mean only pegged exchange rates that are then devalued? If a currency is floating, defining a “crisis” is subjective. Also, there is a big question of causality here - the currency crisis could be the result of an expectation of default. It is going to be very hard to decide what caused what.
Brian Romanchuk
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2018-03-23T22:15:49.710Z
Another vagueness issue is the term “debt crisis.” People can define practically anything to be a “crisis” in the news, since a headline with “crisis” in it attracts attention. We normally need a formal event that can be objectively determined after the fact, such as a debt default. So is the question about defaults, or a more subjective criterion like a rapid rise in bomd yields/spreads?
Brian Romanchuk
<currency><debt><economic-crisis>
Can a currency crisis be the proximate cause of a debt crisis?
John Smith
# Can a currency crisis be the proximate cause of a debt crisis?

(Asked by: username_0 on 2018-03-21)

I'm just curious whether there are any historical examples of a currency crisis in a country (speculative attacks leading causing a sudden devaluation of currency) leading directly to a debt crisis?

**Tags:** currency, debt, economic-crisis

> **Comments:**
> **username_1**: The term “currency crisis” is somewhat vague here - do you mean only pegged exchange rates that are then devalued? If a currency is floating, defining a “crisis” is subjective. Also, there is a big question of causality here - the currency crisis could be the result of an expectation of default. It is going to be very hard to decide what caused what.  
> **username_1**: Another vagueness issue is the term “debt crisis.” People can define practically anything to be a “crisis” in the news, since a headline with “crisis” in it attracts attention. We normally need a formal event that can be objectively determined after the fact, such as a debt default. So is the question about defaults, or a more subjective criterion like a rapid rise in bomd yields/spreads?  

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## 0 answers

