Currency Regimes, Capital Flows, and Crises
@article{Krugman2014CurrencyRC, title={Currency Regimes, Capital Flows, and Crises}, author={Paul Krugman}, journal={IMF Economic Review}, year={2014}, volume={62}, pages={470-493} }
Ever since Greece experienced its debt crisis, fiscal discussion has been “Hellenized” — that is, there are constant warnings that other countries, including the United States, are on the verge of a similar crisis. But can countries that borrow in their own currency experience Greek-type crises? I argue, based both on evidence and on simple modeling, that the answer is no.
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