Do you believe a contagion effect of capital flow and currency crises can lead to greater volatility and deep stabilization in markets?

Capital Flow and Currency Crises. One of the distinguishing features of currency crises and capital flight episodes that have occurred since the 1980’s is that they have often linked across countries. Do you believe a contagion effect of capital flow and currency crises can lead to greater volatility and deep stabilization in markets? In your answer, include one example where this has occurred.

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