Policy Making and Speculative Attacks in Models of Exchange Rate Crises: A Synthesis.

This paper discusses within a common analytical framework the logical and analytical links between theories of exchange rate crises that model the abandonment of a peg as an optimizing decision by rational policy makers, and theories that focus on the dynamics of speculative attacks when policies are incoherent with the indefinite defense of the current nominal parity.

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Year of publication:	1996
Authors:	Corsetti, G. ; Cavallari, L.
Institutions:	Economic Growth Center, Economics Department
Subject:	EXCHANGE RATE \| MODELS \| FINANCIAL MARKET \| INTERNATIONAL FINANCE

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Series:	Yale - Economic Growth Center.
Type of publication:	Book / Working Paper
Notes:	26 pages
Classification:	E40 - Money and Interest Rates. General ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; F30 - International Finance. General ; F31 - Foreign Exchange ; G15 - International Financial Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005675233