What Causes Currency Crises: Sunspots, Contagion or Fundamentals?.

This paper is an attempt to explain currency crises and exchange rate movements in open emerging markets during the 1990s. A model is developed that allows a systematic comparison and evaluation of three competing explanations for crises: weak economic fundamentals, contagion and sunspots, i.e. exogenous shifts in agents' beliefs.

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Year of publication:	1999
Authors:	Fratzscher, M.
Institutions:	Department of Economics, European University Institute
Subject:	CURRENCIES \| PROJECTIONS \| MONETARY CRISIS

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Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	45 pages
Classification:	F30 - International Finance. General ; E60 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook. General ; E65 - Studies of Particular Policy Episodes ; E44 - Financial Markets and the Macroeconomy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005697723