Speculative attacks : fundamentals and self-fulfilling prophecies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Speculative attacks : fundamentals and self-fulfilling prophecies write by Robert P. Flood. This book was released on 1996. Speculative attacks : fundamentals and self-fulfilling prophecies available in PDF, EPUB and Kindle.
Self-Fulfilling Risk Predictions
Self-Fulfilling Risk Predictions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Self-Fulfilling Risk Predictions write by Robert P. Flood. This book was released on 1998-08. Self-Fulfilling Risk Predictions available in PDF, EPUB and Kindle. Currency crises in Europe and Mexico, as well as those unfolding in Asia, have renewed efforts to understand and control the forces underlying speculative attacks on fixed exchange rates. Until the European crises in 1992-93, there was general agreement about the underlying cause of speculative attacks. A country would ultimately face an attack if it ran macroeconomic policies inconsistent in the longer term with the fixed exchange rate. For example, if a government monetized a large fiscal deficit, excessive money growth would cause its international reserve holdings to decline and eventually trigger an attack by speculators. The government would be forced to abandon the fixed exchange rate and let the currency depreciate. The view that deteriorating fundamentals led to currency crises was formalized in a set of "first-generation" crisis models.1
Self-Fulfilling Risk Predictions
Self-Fulfilling Risk Predictions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Self-Fulfilling Risk Predictions write by Mr.Robert P. Flood. This book was released on 1998-08-01. Self-Fulfilling Risk Predictions available in PDF, EPUB and Kindle. The paper shows that changing market beliefs about currency risk can generate a self-fulfilling speculative attack on a fixed exchange rate. The attack does not require a later change in policies to make it profitable. This is illustrated by introducing an endogenous risk premium into a “first-generation model” of a speculative attack. The model is further modified to take account of sterilization, debt-financed fiscal deficits, and anticipatory price-setting behavior. The model is used to interpret the 1994 Mexican peso crisis.
Contagion
Contagion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Contagion write by Mr.Paul R. Masson. This book was released on 1998-09-01. Contagion available in PDF, EPUB and Kindle. Several concepts of contagion are distinguished. It is argued that only models that admit of multiple equilibria are capable of producing true contagion. A simple balance of payments model is presented to illustrate that phenomenon, and some back-of-the-envelope calculations assess its relevance to the coincidence of emerging market crises in 1994–95 and in 1997.
Speculative Bubbles, Speculative Attacks, and Policy Switching
Speculative Bubbles, Speculative Attacks, and Policy Switching - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Speculative Bubbles, Speculative Attacks, and Policy Switching write by Robert P. Flood. This book was released on 1994. Speculative Bubbles, Speculative Attacks, and Policy Switching available in PDF, EPUB and Kindle. The papers in this book are grouped into three sections: the first on price bubbles is primarily financial; the second on speculative attacks (on exchange rate regimes) is international in scope; and the third, on policy switching, is concerned with monetary policy.
