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We explore the interactions between exchange rate and fiscal policy, and default on external debt. Exchange rate policy … government to set the exchange rate at a level in which partial default occurs. In this case multiple equilibria exist, with one … featuring high interest rate, overvalued exchange rate, low level of output, and default. Default is also an equilibrium under a …
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After the onset of the East Asian financial crisis, the interest in early warning system has been revived. While there are different causes to which crises can be attributed, early warning system can be utilized to predict its emergence via monitoring of key economic variables. Thus,...
Persistent link: https://www.econbiz.de/10005490080
default of five European “peripheral” countries during January 2006 to September 2011 with a panel smooth threshold regression …
Persistent link: https://www.econbiz.de/10011117998
After the onset of the East Asian financial crisis, the interest in early warning system has been revived. While there are different causes to which crises can be attributed, early warning system can be utilized to predict its emergence via monitoring of key economic variables. Thus,...
Persistent link: https://www.econbiz.de/10011935847
The evolution of financial-currency phenomena after the 90s and, in particular, in the last decade, has disrupted the financial-currency relationships with serious consequences on the monetary-currency balance in a series of countries with extension at regional or international level, as well as...
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