1,401 Citations
Models of currency crises with self-fulfilling features: A comment
- Economics
- 2009
Much attention has been paid to models of currency crisis with self-fulfilling features and the concept of multiple equilibria developed in the 1990s. They aim at explaining currency crisis without…
Financial Market Development and Self-Fulfilling Currency Crises
- Economics
- 1999
We build a model of a fixed exchange rate regime with escape clauses and output persistence. In the spirit of the Asian crisis in 1997, persistence in our model arises from inability of the domestic…
Self-fulfilling Currency Crises and Central Bank Independence*
- Economics
- 2000
We develop a model of a fixed exchange rate peg arrangement derived from the Barro-Gordon model of rules versus discretion. It is shown that the fixed peg is vulnerable to self-fulfilling currency…
What Causes Currency Crises: Sunspots, Contagion or Fundamentals?
- Economics
- 1999
This paper is an attempt to explain currency crises and exchange rate movements in open emerging markets during the 1990s. A model is developed that allows a systematic comparison and evaluation of…
Budget Deficits and Exchange-Rate Crises
- Economics
- 2011
This paper investigates currency crises in an optimizing general equilibrium model with overlapping generations. It is shown that a rise in government budget deficits financed by future taxes…
References
SHOWING 1-10 OF 41 REFERENCES
Financial crises and balance of payments crises: A simple model of the southern cone experience
- Economics
- 1987
The instability of fixed exchange rate systems when raising the nominal interest rate is costly
- Economics
- 1997
The Mirage of Fixed Exchange Rates
- Economics
- 1995
This paper discusses the profound difficulties of maintaining fixed exchange rates in a world of expanding global capital markets. Contrary to popular wisdom, industrialized-country monetary…
The Logic of Currency Crises
- Economics
- 1994
Once one recognizes that governments borrow international reserves and exercise other policy options to defend fixed exchange rates during currency crises, the question arises: What factors determine…
Varieties of Capital-Market Crises
- Economics
- 1995
In this post-modern world of high capital mobility, countries are being disciplined by the anonymous capital market. One view of the situation -perhaps the prevalent view among economists- is that…
Speculative Market Structure and the Collapse of an Exchange Rate Mechanism
- Economics
- 1995
A salient feature of recent currency speculations in the European Exchange Rate Mechanism is that the speculators can be big strategic players in the market, along with the central bank. This paper…
Policy Measures to Avoid a Currency Crisis
- Economics, Political Science
- 1995
This paper considers a number of policy measures that may be used to preserve a fixed exchange rate. These are analyzed in a model where a switch of exchange-rate regime is triggered by an optimizing…
Speculative Attacks on Pegged Exchange Rates: An Empirical Exploration with Special Reference to the European Monetary System
- Economics
- 1994
This paper presents an empirical analysis of speculative attacks on pegged exchange rates in 22 countries between 1967 and 1992. We define speculative attacks or crises as large movements in exchange…
European Exchange Rate Credibility Before the Fall
- Economics
- 1993
Realignment expectations which measure exchange rate credibility are analyzed for European exchange rates, using daily financial data since the inception of the EMS. It is difficult to find…