ABSTRACT

There is little doubt that the consequences of currency crises are severe, although it may well be said that the cure is often more troublesome than the ailment. While it is undoubtedly unpleasant to hear that the reserves of a country are dwindling, that the balance of payments is in substantial and permanent deficit and that 'something needs to be done', this in itself causes little hardship. On the contrary, the trend may well continue for a long time without its being detected by the population at large, provided nobody in authority draws attention to the state of affairs.