Prospective Deficits and the Asian Currency Crisis

Craig Burnside, Martin Eichenbaum and Sergio Rebelo ()

RCER Working Papers from University of Rochester - Center for Economic Research (RCER)

Abstract: This paper argues that the recent Asian currency crisis was caused by large prospective deficits associated with implicit bail out guaranteed to guarantees to failing banking systems. We articulate this view using a simple dynamic general equilibrium model whose key feature is that a speculative attack is inevitable once the present value of future government deficit rises.

Keywords: EXCHANGE RATE; CURRENCIES; ASIA (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Pages: 45 pages
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Related works:
Journal Article: Prospective Deficits and the Asian Currency Crisis (2001)
Working Paper: Prospective deficits and the asian currency crisis (1999)
Working Paper: Prospective Deficits and the Asian Currency Crises (1998)
Working Paper: Prospective deficits and the Asian currency crisis (1998)
Working Paper: Prospective Deficits and the Asian Currency Crisis (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:roc:rocher:458

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