The project is focused on the implementation of a research fellowship at the Stockholm School of Economics in Riga (SSE Riga). Throughout the period of the fellowship, the competence of the researcher will be raised by deepening the knowledge of quantitative methods - especially time series / panel data analysis, forecasting currency crises. In addition, the fellowship will include collection of data for the upcoming publication. The aim of the study will be to investigate whether the factors that explain the ability of the Baltic States (especially Latvia) to avoid a currency crisis during the Great Recession can be used to improve the explanatory and predictive power of common exchange rate models. This issue is important in both scientific and practical terms. The main aim of the researcher is to deepen the relevant knowledge of econometrics and currency crisis theories and models as well as to fill the gap in the literature.