Can a currency collapse be predicted

Abstract

Money is widely believed to be one of mankind’s greatest works of fiction. Since the inception of currency or paper money, the way in which business and trade is conducted has undergone a sea of change. The globalized world of today is ever dependent on currency and the slightest hint of a currency shock sends shivers down the spine of mighty governments, leave alone mere citizens. As a result, many attempts have been made by researchers to identify a set of indicators that could give a precise warning of an impending currency shock. History is replete with examples of countries and governments who had to suffer due to currency related issues, an aspect which affects the lives of each and every individual. We have tried to analyze the financial indicators for the countries affected during the Asian crisis of 1997 and have attempted to find a trend in the indicators for the affected countries.