Mackowiak, Bartosz - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2006
This paper explains a currency crisis as an outcome of a switch in how monetary policy and fiscal policy are … and, in a particular state of nature, monetary policy switches to passive and fiscal policy switches to active. The … coordinated. The paper develops a model of an open economy in which monetary policy starts active, fiscal policy starts passive …