Policy Implications of "Second-Generation" Crisis Models
Title | Policy Implications of "Second-Generation" Crisis Models PDF eBook |
Author | Mr.Robert P. Flood |
Publisher | International Monetary Fund |
Pages | 12 |
Release | 1997-02-01 |
Genre | Business & Economics |
ISBN | 1451843364 |
After the speculative attacks on government-controlled exchange rates in Europe and in Mexico, economists began to develop models of currency crises with multiple solutions. In these models, a currency crisis occurs when the economy suddenly jumps from one solution to another. This paper examines one of the new models, finding that raising the cost of devaluation may make a crisis more likely. Consequently, slow convergence to a monetary union, which increases the cost to the government of reneging on an exchange rate peg, may be counterproductive. This conclusion is exactly the opposite of that obtained from earlier models.
Policy Implications of "Second-Generation" Crisis Models
Title | Policy Implications of "Second-Generation" Crisis Models PDF eBook |
Author | Robert P. Flood |
Publisher | |
Pages | 11 |
Release | 2006 |
Genre | |
ISBN |
After the speculative attacks on government-controlled exchange rates in Europe and in Mexico, economists began to develop models of currency crises with multiple solutions. In these models, a currency crisis occurs when the economy suddenly jumps from one solution to another. This paper examines one of the new models, finding that raising the cost of devaluation may make a crisis more likely. Consequently, slow convergence to a monetary union, which increases the cost to the government of reneging on an exchange rate peg, may be counterproductive. This conclusion is exactly the opposite of that obtained from earlier models.
Policy Implications of "second-generation" Crisis Model
Title | Policy Implications of "second-generation" Crisis Model PDF eBook |
Author | Robert P. Flood |
Publisher | |
Pages | 11 |
Release | 1997 |
Genre | |
ISBN |
Financial Crises, Monetary Policy and Financial Fragility
Title | Financial Crises, Monetary Policy and Financial Fragility PDF eBook |
Author | Sylvester C. W. Eijffinger |
Publisher | |
Pages | 48 |
Release | 2002 |
Genre | Financial crises |
ISBN |
Financial Crises Explanations, Types, and Implications
Title | Financial Crises Explanations, Types, and Implications PDF eBook |
Author | Mr.Stijn Claessens |
Publisher | International Monetary Fund |
Pages | 66 |
Release | 2013-01-30 |
Genre | Business & Economics |
ISBN | 1475561008 |
This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.
Second Generation Models of Currency Crises
Title | Second Generation Models of Currency Crises PDF eBook |
Author | Jesper Rangvid |
Publisher | |
Pages | 34 |
Release | |
Genre | |
ISBN |
Currency Crisis Analysis Based on East Asian Countries' Experiences
Title | Currency Crisis Analysis Based on East Asian Countries' Experiences PDF eBook |
Author | Seok Hyun Yoon |
Publisher | |
Pages | 100 |
Release | 2003 |
Genre | Currency crises |
ISBN |