Currency crisis: a theoretical and empirical perspective/
Andre Fourcans and Raphel Franck
- Cheltenham: Edward Elgar, 2003.
- xvi, 261 p. ; 24 cm.
- (New horizons in money and finance) .
First-Generation Models of Currency Crises -- Main Assumptions of First-generation Models -- The growth in domestic credit -- The outbreak of speculative attacks -- Aspects of the Policymaker's Behaviour -- Defences against speculative attacks -- The choice of an exchange rate regime after speculative attacks -- Speculative attacks in a stochastic framework -- Extensions of First-generation Models -- Fiscal sources of speculative attacks -- Real effects of currency crises -- Influence of the banking sector -- Coordination of speculative attacks and contagion -- Second-Generation Models of Currency Crises -- Self-fulfilling Expectations and the Outbreak of Currency Crises -- Self-fulfilling speculative attacks -- Escape clause models -- Self-fulfilling Expectations and Currency Crisis Contagion -- Main assumptions of pure contagion models -- Pure contagion of currency crises -- The Relevance of Second-generation Models -- Regulatory implications of second-generation models -- Empirical assessments of currency crises -- Theoretical and empirical problems with multiple equilibria -- Third-Generation Models of Currency Crises -- Economic Policy Tradeoffs and the Outbreak of Currency Crises -- The policymaker's optimal commitment to exchange rate stability -- Exchange-rate based stabilisation plans and currency crises -- Optimal monetary policy and the interest rate defence of the fixed exchange rate system -- The policymaker's reputation -- Deteriorated Fundamentals and Currency Crisis Contagion -- Models of 'common shocks'.