Fratzscher, Marcel; Mehl, Arnaud; Vansteenkiste, Isabel - In: IMF Economic Review 59 (2011) 4, pp. 683-716
This paper investigates the empirical link between fiscal vulnerabilities and currency crashes in advanced economies over the last 130 years, building on a new data set of real effective exchange rates and fiscal balances for 21 countries since 1880. The paper finds evidence that crashes depend...