Debt Crises and Exchange Crises.

The paper examines to what extent a high public debt implies high vulnerability of a fixed exchange regime to currency crises. We combine a model of optimal debt repudiation, through inflation-devaluation, with a stochastic balance of payments crisis model.

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Year of publication:	1996
Authors:	Reding, P.
Institutions:	Faculté des Sciences Économiques, Sociales et de Gestion (FSESG), Université de Namur
Subject:	PUBLIC DEBT \| EXCHANGE RATE \| CURRENCIES \| BALANCE OF PAYMENTS \| INFLATION

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Series:	Notre-Dame de la Paix, Sciences Economiques et Sociales.
Type of publication:	Book / Working Paper
Notes:	30 pages
Classification:	E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; H60 - National Budget, Deficit, and Debt. General ; H63 - Debt; Debt Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005625592