A fixed exchange rate system crisis may be accompanied or followed by

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A fixed exchange rate system crisis often leads to devaluation of a currency, as the government may be forced to abandon the fixed rate and allow market forces to determine the exchange rate. This can result in a lowering of the value of the currency relative to other currencies. Unexpected gains of international reserves or gains in comparative advantage are unlikely in a crisis situation. While deflationary pressures may occur as a result of a crisis, it is not necessarily a guaranteed outcome. Revaluation of a currency is also unlikely in this context, as the crisis usually involves a downward adjustment of the exchange rate.

A Fixed Exchange Rate System Crisis May Be Accompanied or Followed