Showing 1 - 10 of 133,581
expectations. -- global games ; complementarities ; signaling ; self-fulfilling expectations ; multiple equilibria ; currency …
Persistent link: https://www.econbiz.de/10003779286
originates in the signaling role of policy choices. A novel procedure of iterated elimination of non-equilibrium strategies is …
Persistent link: https://www.econbiz.de/10009790364
Global games of regime change – coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it – have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We extend...
Persistent link: https://www.econbiz.de/10008665284
Global games of regime change that is, coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We...
Persistent link: https://www.econbiz.de/10003779212
This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights on the joint determination of expectations and macroeconomic outcomes. We review and synthesize recent work on global games, beauty contests, and their applications. We...
Persistent link: https://www.econbiz.de/10011573121
Persistent link: https://www.econbiz.de/10001765364
Persistent link: https://www.econbiz.de/10002114565
Persistent link: https://www.econbiz.de/10002804665
This paper studies the design of optimal monetary policy rules for emerging economies confronted to sharp capital outflows and speculative attacks. We extend Taylor type monetary policy rules by allowing the central bank to give some weight to the level of precautionary foreign reserve balances...
Persistent link: https://www.econbiz.de/10003915320
A successful speculative attack against one currency is a wake-up call for speculators elsewhere. Currency speculators have an incentive to acquire costly information about exposures across countries to infer whether their monetary authority's ability to defend its currency is weakened....
Persistent link: https://www.econbiz.de/10010202930