The currency crises theory and their application to the PIIGS countries

Bachelor thesis aims to highlight using the "traditional" (like the current account balance relative to GDP, gross debt to GDP), and "modern" indicators (overvaluation of the real effective exchange rate, the development of terms of trade) currency crises on the (hypothetical) the occurrence of a currency crisis in peripheral Eurozone countries. We also discuss possible causes of the (hypothetical) monetary crisis. The paper emphasized expansionary monetary and fiscal policy inadequate fundamentals of these economies. In this context, the work pays attention to the internal and external imbalances economies. Post paradoxically leads to opinion on the occurrence of a kind of quasi-currency crisis in the monetary union in which not one member of the monetary union can devalue its currency, resp. "defend" the domestic currency's own national monetary policy. To re-establish a balance they need to achieve internal devaluation, among other.