Since the breakdown of the Bretton Woods international monetary international currencies have been particularly volatile. This volatility in the relative value of international currencies holds especially true for the currencies of emerging market economies. These economies are arguably more susceptible to the probable negative macroeconomic effects resulting from speculative attacks on their respective currencies than developed market economies. Emerging markets are not characterised as having adequate financial markets and macroeconomic institutions conducive of stability. Nevertheless, exactly what the negative macroeconomic effects could be – if any – has been the subject of considerable empirical scrutiny since the 1980s. Of particular concern to international economists have been to examine what the potential effect of exchange rate volatility could be on global welfare and international trade flows. While the volume of research has been substantial, empirical research has thus far been unable to reach consensus surrounding the conjectured effect that exchange rate volatility may exert on international trade flows. After the subprime mortgage crisis of 2007 to 2009, the Great Recession of 2008 to 2012 and with several European countries still reeling from the sovereign debt crisis, emerging market currencies have seen great fluctuations in value over the last couple of years.