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Economics 243
International Finance
"Because the exchange rate is changed infrequently and only to meet substantial difficulties, a change tends to come well after the onset of difficulty, to be postponed as long as possible, and to be made only after substantial pressure on the exchange rate has accumulated. In consequence, there is seldom any doubt about the direction in which an exchange rate will be changed, if it is changed. In the interim between the suspicion of a possible change in the rate and the actual change, there is every incentive to sell the country's currency if a devaluation is expected or buy if an appreciation is expected."
-Milton
Friedman ("The Case for Flexible Exchange Rates", in
Essays in Positive Economics, 1953) 
Current Quotes Useful Links
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Interesting Papers
"A Survey of Empirical Research on Nominal Exchange Rates", by Jeffrey Frankel and Andrew Rose
"The Economics of Currency Crises and Contagion: An Introduction", by Paolo Pesenti and Cedric Tille
"The Mexican Peso Crisis: How Much Did We Know? When Did We Know It?", by Sebastian Edwards
"What Caused the Asian Currency and Financial Crisis?", Giancarlo Corsetti, et al.
"A Case Study of a Currency Crisis: The Russian Default of 1998"
"The IMF and Recent Capital Account Crises: Indonesia, Korea, and Brazil"
