A Model to Explain the Timing of an Exchange Rate Collapse.

There are two main schools of thought which seek to explain currency crises; fundamentalist theories (Krugman, 1979) and speculative theories ( Obstfeld, 1986). However, neither of these approaches considers the timing of a speculative attack on the currency. I explain the timing of a crisis in terms of an information externality in the foreign exchange market.

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Year of publication:	1998
Authors:	Allsopp, L.
Institutions:	Department of Economics, University of Birmingham
Subject:	INFORMATION \| CURRENCY CRISES

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Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	24 pages
Classification:	D83 - Search, Learning, Information and Knowledge ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005086711