Why clashes between internal and external stability goals end in currency crises, 1797–1994
نویسندگان
چکیده
منابع مشابه
Why are Currency Crises Contagious?
Executive Summary Currency crises tend to be regional. Since macroeconomic and financial phenomena are not regional, these phenomena are unimportant in understanding why crises spread. But international trade is regional, as countries tend to trade with their neighbors. This suggests that trade links are important in understanding how currency crises spread, above and beyond any macroeconomic p...
متن کاملContagion and Trade: Why Are Currency Crises Regional?
Currency crises tend to be regional; they affect countries in geographic proximity. This suggests that patterns of international trade are important in understanding how currency crises spread, above and beyond any macroeconomic phenomena. We provide empirical support for this hypothesis. Using data for five different currency crises (in 1971, 1973, 1992, 1994, and 1997) we show that currency c...
متن کاملCorporate Currency Hedging and Currency Crises
We examine the impact of corporate currency hedging on economic stability by introducing hedging activity in a Mundell-Fleming-Tobin framework for analyzing currency and financial crises. The ratio between hedged and unhedged firms is modelled depending on firm size as well as hedging costs. The results indicate that, with an increasing fraction of hedged firms in an economy, the magnitude of a...
متن کاملCommentary: Avoiding Currency Crises
The paper by Barry Eichengreen and Ricardo Haussman is correct to focus on the policies that the emerging market countries (EMC) themselves can pursue to reduce the risk of future economic crises, instead of discussing new policies for the IMF or for the industrial countries that some analysts hope might achieve that goal. I agree with their emphasis on EMC self-help and on the multiple causes ...
متن کاملCurrency Crises and Macroeconomic Performance
Economic Group Reserve Bank of Australia We thank colleagues in Economic Research Department and Financial System Group, especially Adam Cagliarini and David Gruen, for their suggestions. Aart Kraay generously provided some of the data used in Section 2. Any errors are ours and the opinions expressed here should not be attributed to the Reserve Bank of Australia.
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ژورنال
عنوان ژورنال: Open Economies Review
سال: 1996
ISSN: 0923-7992,1573-708X
DOI: 10.1007/bf01886207