model and estimate devaluation expectations.The results suggest that the exchange rates gained credibility towards the end …

credibility in the form of decreasing devaluation expectations over the period 1987-1992.The explanation for this increase in the … devaluation expectations.The divergence of the business cycles added to this effect.The level of foreign exchange reserves of the ….In the hard-currency countries, by contrast, devaluation expectations could not be seen even in the very eve of the crisis …