BIS Review 38/1998  -2-  In short, the slowing in activity in Asia exposed the high fixed costs of a leveraged economy, especially one with fixed obligations in foreign currencies. Failures to make payments induced vicious cycles of contagious, ever rising, and reinforcing fears. It is quite difficult to anticipate such crises.
Three broad  BIS Review 171/2010  1  parameters are worth mentioning in this regard: i)- expectations about the continuation of inflationary trends; ii)- the output gap or the difference between aggregate domestic demand and the ability and capacity of the economy to meet that demand; and, iii)- cost push or supply shocks.