Journal of Applied Corporate Finance
More than two-thirds of the 182-member countries of the International Monetary Fund have experienced financial crises in the last 20 years. These crises have occurred in countries in all parts of the world and at all levels of economic development. They have often imposed significant costs on the economies in which they have occurred. Worse yet, when the cost of a crisis approaches 50% of GDP, as occurred in Thailand in 1997, social and political stability is subjected to considerable stress.
Indeed, the recent crisis in Indonesia, costing an unprecedented 80% of GDP, actually contributed to social and political conflict severe enough to topple one of the world's most entrenched dictators.