Why Do Currency Crises Recur?

Graham Bird, Graham Bird and Graham Bird
Authors registered in the RePEc Author Service: Graham Bird

World Economics, 2019, vol. 20, issue 2, 149-182

Abstract: Argentina and Turkey experienced currency crises in 2018, having also had crises in 2001. Why do crises recur? There are three generations of model that help to explain in theory why currency crises occur, although in practice the theories need to be amalgamated. The recurrence of currency crises implies that either appropriate lessons have not been learnt or, for some reason, countries have been unable to convert learning into actions. Key lessons are first, avoid excessively large fiscal deficits, rapid credit creation and debt accumulation, and second, reduce economic and financial vulnerability and create better insulation from external shocks. Empirical analysis shows that the causes of the crises in Argentina and Turkey in 2018 were different from those in 2001.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldeconomics.com/Journal/Papers/Article.details?ID=747 (application/pdf)

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:wej:wldecn:747

Access Statistics for this article

More articles in World Economics from World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE
Bibliographic data for series maintained by Ed Jones ().