an optimal level) leads to currency crisis due speculative attack. The most widely used model in the decision of creating …This paper analyzes the unanalized topic in macroeconomic (monetary) politics, which is the emergence of the currency … crisis as a consequence of targeting inflation. Many central banks adopted inflation targeting under a pressure from the IMF …

dynamics resemble the models of a currency crisis following Krugman (1979) and Obstfeld (1986). Like in Obstfeld's work …