Increasing crisis probabilities in one country can trigger currency crises worldwide.
The article explores how countries' economies can be affected by each other's financial crises. When one country's currency is in trouble, it can lead to problems for its trading partners too. This happens because people in those countries might worry about losing money and start changing their wages. This can make other countries' currencies lose value too. So, not only actual currency devaluations but also the fear of a crisis can cause problems in other countries. This shows that not just economic weaknesses, but also sudden changes in how people feel about the market, can lead to currency crises.