The theoretical framework used to analyze fixed exchange rate crises is shown to apply also to external debt crises. As a result, in both cases it is possible to identify three separate regions of the state of economic fundamentals: one of stability, one of instability and an intermediate “gray” region subject to multiple equilibria. In the case of external debt crises, however, expectations may even change the state of economic fundamentals in a self-fulfilling way through the effect they exert on interest rates.
Currency and external debt crises: A unifying framework
DELLA POSTA, POMPEO
2016-01-01
Abstract
The theoretical framework used to analyze fixed exchange rate crises is shown to apply also to external debt crises. As a result, in both cases it is possible to identify three separate regions of the state of economic fundamentals: one of stability, one of instability and an intermediate “gray” region subject to multiple equilibria. In the case of external debt crises, however, expectations may even change the state of economic fundamentals in a self-fulfilling way through the effect they exert on interest rates.File in questo prodotto:
| File | Dimensione | Formato | |
|---|---|---|---|
|
Journal of Policy Modeling_2016.pdf
non disponibili
Tipologia:
Versione finale editoriale
Licenza:
NON PUBBLICO - accesso privato/ristretto
Dimensione
583.65 kB
Formato
Adobe PDF
|
583.65 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
|
Revised 30 April - Della Posta - Currency and External Debt Crises JPM.pdf
accesso aperto
Tipologia:
Documento in Post-print
Licenza:
Creative commons
Dimensione
551.78 kB
Formato
Adobe PDF
|
551.78 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
