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- W1535446823 abstract "While virtually all modern models of exchange rate crises recognise that the decision to abandon an exchange rate peg depends on how harshly policy makers are willing to defend the regime, they virtually never model how the exchange rate is defended. We argue that incorporating both the mechanics of speculation and a defence policy against speculation in the well-known currency crisis model of Morris and Shin (American Economic Review 88 (1998) 587-97) considerably improves its performance at explaining stylised features of speculative attacks. We develop a connection with the literature on exchange market pressure to confirm the predictions of our augmented model empirically." @default.
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- W1535446823 date "2008-01-01" @default.
- W1535446823 modified "2023-09-26" @default.
- W1535446823 title "Currency crises and the interest rate defence" @default.
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