In the typical cycle, the crisis arises because the unsustainable pace of capital that drove the bubble slows, but in many cases, there is some sort of a shock (like a decline in oil prices for an oil producer). Generally the causes of the top-reversal fall into a few categories: The income from selling goods and services to foreigners drops (e.g., the currency has risen to a point where it’s made the country’s exports expensive; commodity-exporting countries may suffer from a fall in commodity prices). The costs of items bought from abroad or the cost of borrowing rises. Declines in capital
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