EconPapers    
Economics at your fingertips  
 

Speculative Attacks and Informational Structure: an Experimental Study

Camille Cornand

Post-Print from HAL

Abstract: This paper addresses the question of whether public information destabilizes the economy in the context of signals of a different nature. We present an experimental evaluation of the speculative attack game of Morris and Shin (1998). Our objective is two-fold: to evaluate whether public information destabilizes the economy within a context of signals of different nature and to enlarge upon the results of Heinemann, Nagel, and Ockenfels (2004) (HNO). Our evidence suggests that in sessions with both private and common signals, the fact that the common signal plays a focal role enhances the central bank's welfare: it reduces the probability of crisis and increases its predictability. Therefore, we raise doubts about the policy implications of HNO's findings. The new policy lesson is that the central bank has more control over the beliefs of traders if it discloses one clear signal when agents also get private information from other sources.

Date: 2008-11
References: Add references at CitEc
Citations:

Published in Review of International Economics, 2008, 14 (5), pp.797-817. ⟨10.1111/j.1467-9396.2006.00608.x⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Speculative Attacks and Informational Structure: an Experimental Study (2006) Downloads
Working Paper: Speculative Attack and Informational Structure: an Experimental Study (2006) Downloads
Working Paper: Speculative Attack and Informational Structure: An Experimental Study (2004) Downloads
Working Paper: Speculative Attack and Informational Structure: An Experimental Study (2004) Downloads
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:hal:journl:hal-00279185

DOI: 10.1111/j.1467-9396.2006.00608.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).

 
Page updated 2024-10-12
Handle: RePEc:hal:journl:hal-00279185