Speculative Attacks and Models of Balance of Payments Crises

Robert Flood, Jagdeep Bhandari and Pierre-Richard Agénor

No 1991/099, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews recent developments in the theoretical and empirical analysis of balance-of-payments crises. A simple analytical model highlighting the process leading to such crises is first developed. The basic framework is then extended to deal with a variety of issues, such as: alternative post-collapse regimes, uncertainty, real sector effects, external borrowing and capital controls, imperfect asset substitutability, sticky prices, and endogenous policy switches. Empirical evidence on the collapse of exchange rate regimes is also examined, and the major implications of the analysis for macroeconomic policy discussed.

Keywords: WP; exchange rate; balance of payments; regime shift; rate depreciation; money stock; balance-of-payments crisis; credit creation; Chilean peso; exchange rate crisis; exchange rate commitment; exchange rate differential time; inflation rate; nominal exchange rate; Mexican peso; Exchange rates; Exchange rate arrangements; Conventional peg; Real exchange rates; Domestic credit (search for similar items in EconPapers)
Pages: 64
Date: 1991-10-01
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Citations: View citations in EconPapers (29)

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Related works:
Journal Article: Speculative Attacks and Models of Balance of Payments Crises (1992)
Working Paper: Speculative Attacks and Models of Balance-of-Payments Crises (1991)
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