Bilateral currency crises can lead to a significant drop in international trade, reducing it by up to 50%. This decrease in trade can result in welfare costs that are greater than the benefits of free trade agreements and using common currencies. The study looked at 23 currency crisis episodes between 1960 and 2014 and found that a single crisis can lead to welfare reductions of more than 10% (and up to 41%) compared to the costs of not trading internationally.