Has the Nature of Crises Changed? A Quarter Century of Currency Crises in Argentina

Nada Choueiri and Graciela Kaminsky

No 1999/152, IMF Working Papers from International Monetary Fund

Abstract: The recent turmoil in currency markets in Asia, Europe, and Latin America has given a new impetus to the literature on currency crises. The literature originally linked currency crises to deteriorating economic fundamentals, but has more recently focused on self-fulfilling expectations and contagion. To assess the changing roles of domestic and external market fundamentals and contagion, this paper examines seven major currency crises in Argentina. It finds that while crises in the 1970s and 1980s were driven mainly by monetary and fiscal policies at home and abroad, contagion played an important role in the 1990s.

Keywords: WP; exchange rate; money demand; interest rate; financial market; Argentina; currency crises; speculative attacks; vector autoregressions; dual-market premium; exchange rate regime; world interest rate; world interest rate shock; monetary policy shock; unit of account; Mexican peso; reserves holding; exchange rate market; currency turmoil; adverse money demand demand shock; interest rate increase; International reserves; Exchange rate arrangements; Multiple currency practices; Demand for money; Exchange rates; Global (search for similar items in EconPapers)
Pages: 41
Date: 1999-11-01
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Citations: View citations in EconPapers (21)

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