Abstract:

There seems to be a growing convergence of opinion that perverse economic incentives are an important factor contributing to recent financial crises increasingly plaguing many of today’s emerging market economies. That’s why economists have made great strides during the past decade in understanding the dynamics of crises trigger i.e. monetary crises, financial crises, banking crises and especially currency crises. Thus, we have to understand how and why crises were set off ? What are the reasons of crises appearance ? How can we know that it will be a crisis trigger off ? In fact, there are many factors contributing to deep and dangerous crises launch such as: severely decrease in regional demand, low foreign exchange reserves, negative per capita income growth, collapse of currencies, less competitive exports, weaker banks, large outflow investment, falling asset prices, weaker financial and corporate sectors, slower economic growth, large current account deficits, real exchange rate misalignments, inadequate choice of exchange regime, imperfections and disorders of financial services  i. e. banks, international institutions, etc.