Perspectives on the Recent Currency Crisis Literature, Issues 98-130

Front Cover
International Monetary Fund, Sep 1, 1998 - Business & Economics - 57 pages
In the 1990s, currency crises in Europe, Mexico and Southeast Asia have drawn worldwide attention to speculative attacks on government-controlled exchange rates. To improve our understanding of these events, researchers have undertaken new theoretical and empirical work. In this paper, we provide some perspective on this work and relate it to earlier research in the area. Then we derive the optimal commitment to a fixed exchange rate and propose a common framework for analyzing currency crises that draws from both the early first-generation work and the more recent second-generation approach. The cross-generational framework stresses the important role of speculators and also recognizes that the government's commitment to a fixed exchange rate is constrained by other policy goals. In the final section we study the crisis prediction literature and find that some crises may be particularly difficult to predict using currently popular methods.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Summary
3
An Introduction to SecondGeneration Models
13
HI Recent Empirical Work
26
Copyright

1 other sections not shown

Other editions - View all

Common terms and phrases

Bibliographic information