Exchange Rate Crises: Experiences of Latin America, East Asia and India

Manmohan Agarwal and Vandana T. R.

South Asian Journal of Macroeconomics and Public Finance, 2021, vol. 10, issue 2, 158-178

Abstract: A number of developing countries mainly in Latin America and East Asia suffered exchange rate crises in the 1990s. India also suffered a crisis in 1991 and another earlier in 1966. We examine the run up to the crises in terms of a few macroindicators suggested by various crisis models. We then examine the aftermath of the crisis, which is largely absent in literature. We seek to explain the pre-crisis and post-crisis situations in the light of various crisis models. We find that crises in East Asia cannot be explained in terms of Krugman’s first-generation model (FGM), but those in the other countries can be explained by Krugman’s model, adding to the debates among crises models. JEL Classifications : E420, F310, F320, F410

Keywords: Monetary regime; currency crisis; balance of payments (BOP); open economy macroeconomics (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2277978720987341 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:smppub:v:10:y:2021:i:2:p:158-178

DOI: 10.1177/2277978720987341

Access Statistics for this article

More articles in South Asian Journal of Macroeconomics and Public Finance
Bibliographic data for series maintained by SAGE Publications ().