An eclectic third generation model of financial and exchange rate crises

This paper presents an eclectic model that systematizes the dynamics of self-fulfilling crises, using the main aspects of the three typologies of third generation models, to describe the stylized facts that hasten the withdrawal of a pegged exchange rate system. The most striking contributions are the implications for economic policy as well the vanishing role of exchange rate as an instrument of macroeconomic adjustment, when balance-sheet effects are a real possibility.

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Year of publication:	2008
Authors:	Izquierdo, Joaquin Novella ; Alcon, Joan Ripoll i
Institutions:	Facultat d'Economia i Empresa, Universitat de Barcelona
Subject:	speculative attack \| financial liberalization \| financial panic \| financial and exchange rate crisis

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Series:	Working Papers in Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Documents de Treball Number 196 32 pages
Classification:	F41 - Open Economy Macroeconomics ; F43 - Economic Growth of Open Economies ; E44 - Financial Markets and the Macroeconomy ; F31 - Foreign Exchange ; F32 - Current Account Adjustment; Short-Term Capital Movements ; F34 - International Lending and Debt Problems ; F36 - Financial Aspects of Economic Integration ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005022372