to the average for the previous years, accompanied by a noticeable upsurge in capital cost ( calvo, izquierdo and mejia, 2004, and calvo, izquierdo and loo - kung, 2006 ). the difference between quasi - individual adjustments and global adjustments in the balance of payments is useful in drafting economic policies. quasi - individual adjustments emerge in cases where, due to specific conditions, one country alone faces relatively heavy capital inflows over a certain period, followed by a decrease in such inflows. global adjustments are characterised by synchronous, large capital inflows in a great number of countries, followed by their relative reduction for the entire group. usually, the number of countries facing large capital inflows simultaneously is relatively small. however, from time to time, simultaneous episodes of massive capital inflows occur in a relatively great deal of countries. over the past few years, very many countries, romania included, were faced with the capital inflows problem. for this reason, i will refer to synchronous, large capital inflows. as recently pointed out by reinhart and reinhart ( 2008 ), there may be a relationship between these synchronous, large capital inflows and external sovereign defaults, currency crashes, inflation crises and banking crises. the authors defined the crises for each of the above - mentioned components and constructed specific probabilities of crisis emergence for the 1960 – 2007 period in 66 countries. the probabilities were defined both conditional and unconditional on the episodes of heavy capital inflows. the final outcome is that, for low - or middle - income countries, the conditional probabilities for a crisis to emerge are significantly higher than unconditional ones. in other words, the number of crises is higher around the episodes of large capital inflows. one may conclude, in practice, the ensuing magnitude of adjustments and financings is different from that seen in quasi - individual episodes of substantial capital inflows for a given period, followed by their reduction. this owes to the fact that, if synchronised crises occur in any of the cited components – sovereign debt, exchange rate, inflation and banking system – synchronised recession episodes are likely to follow. certainly, simultaneous resorting to external financing with a view to underpinning a great many anti - crisis programmes makes the resources to each country relatively less available and costlier than

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