Spreading Currency Crises The Role of Economic Interdependence

Spreading Currency Crises The Role of Economic Interdependence

Weitere Versionen anzeigen (1)

We analyze in this paper how the mutual dependence of private sector expectations in different countries on one another influences the stability of fixed exchange rate regimes. The crisis probabilities of countries trading with one another are interdependent because wage setters react to an imminent...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
1. Verfasser: Berger, Wolfram (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C International Monetary Fund 2002
Schriftenreihe:IMF Working Papers Working Paper No. 02/144
Online-Zugang:DE-20
DE-824
DE-70
DE-155
DE-29
DE-22
DE-473
DE-1102
DE-703
DE-859
DE-706
DE-384
DE-860
DE-19
DE-739
DE-355
DE-Aug4
DE-1049
DE-12
DE-91
URL des Erstveröffentlichers
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:We analyze in this paper how the mutual dependence of private sector expectations in different countries on one another influences the stability of fixed exchange rate regimes. The crisis probabilities of countries trading with one another are interdependent because wage setters react to an imminent loss of international competitiveness stemming from an increase in the crisis probability of a trading partner. If a currency crisis in one country is perceived to be increasingly likely, the probability of devaluation of its trading partners' currencies to restore their international competitiveness rises as well. Thus, not only actual devaluations but also an increasing crisis probability may trigger currency crises elsewhere. We show that not only fundamental weaknesses but also spontaneous shifts in market sentiment may play a role in precipitating currency crises
Beschreibung:1 Online-Ressource (20 p)
ISBN:1451856458
9781451856453

Ähnliche Einträge