A flexible exchange rate system crisis involves

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In a flexible exchange rate system crisis, there is a rapid and uncontrolled depreciation of the currency. This can occur due to several factors such as a decrease in foreign investment, a decrease in exports, or an increase in imports. A revaluation of the currency or a decrease in the dollar value of the country's international debt may be attempted solutions to the crisis, but they are not necessarily the initial stages of the crisis. A political collapse of the ruling government may be a result of the crisis, but it is not necessarily a characteristic of the crisis itself.

A Flexible Exchange Rate System Crisis Involves