While many Asian countries incurred large current account deficits in 1996, ten years later they had substantial current account surpluses, as well as ample foreign currency reserves.
Let's take a quick look at the asset side of Switzerland's balance sheet: It has a strong currency backed by ample gold reserves, fiscal discipline, trade surplus and very little foreign debt.
As both LIFFE and the continentals battle to dominate the futures business under the single currency, investors will have ample opportunity to decide which system they prefer.
Most now have flexible exchange rates, which leave them less vulnerable to a disruptive collapse of currency pegs, as well as ample reserves to shield them against a run on their currencies, government debt, and bank deposits.
Astonishingly, many state granaries held ample grain that was mostly reserved for hard currency-earning exports or donated as foreign aid; these granaries remained locked to the hungry peasants.
With at least $75 billion in foreign currency reserves and no external government debt, Singapore's economists have ample room to soften the recession's impact on citizens.
The usual worry that a falling currency will lift inflation is also lessened, because America still has ample spare capacity and its inflation rate (1.3% on its core measure, excluding energy and food) is, if anything, too low the Fed would welcome a modest rise.
Hong Kong and Singapore faced incipient currency runs although their economic fundamentals are sound and their economic data ample.
But Ukraine has almost never had sensible policies; it has profligate ones, and the investors who used to support that profligacy when Ukraine offered high interest rates and a stable currency are now nowhere to be seen.Time for the IMF, which has ample experience with this kind of balance-of-payments crisis.
