The East Asian currency crisis is one of the major economic events of the previous century. It marred the end of the spectacular growth of this region maintained for over three decades. It sparked a new interest among economists who have long been trying to model currency crisis. These models of currency crisis broadly fall into two generations. The first generation models explain currency crisis as the result of inconsistencies between domestic policies and the attempt to maintain a fixed exchange rate. Weak macro fundamentals are the precondition for a crisis in these models. The second generation models, however, allow for the possibility of multiple equilibria. They explain how a bad equilibrium or a crisis occurs of a self-fulfilling speculative attack. Finally, a careful examination of the macro fundamentals and vulnerabilities in the East Asian Economies shows that the second generation models better explain the crisis in these economies.