Macroeconomic regime switches and speculative attacks
نویسندگان
چکیده
منابع مشابه
Macroeconomic Regime Switches and Speculative Attacks
This paper explains a currency crisis as an outcome of a switch in how monetary policy and fiscal policy are coordinated. The paper develops a model of an open economy in which monetary policy starts active, fiscal policy starts passive and, in a particular state of nature, monetary policy switches to passive and fiscal policy switches to active. The probability of the regime switch is endogeno...
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We develop a framework for studying the choice of exchange rate regime in an open economy where the local currency is vulnerable to speculative attacks. The framework makes it possible to study, for the first time, the strategic interaction between the ex ante choice of regime and the likelihhod of ex post currency attacks. The optimal regime is determined by a policymaker who trades off the lo...
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This paper surveys the persian monetary crises due to economic sanctions and speculative attacks that leads to high inflation. Economic sanctions are associated with various forms of trade barriers and restriction on financial transactions. Among the most influential sanctions on Iran's oil export and central bank sanctions are noted that their Aims to reduce Iran's oil revenues and Devaluation...
متن کاملRegime Switches, AgentsBeliefs, and Post-World War II U.S. Macroeconomic Dynamics
The evolution of ination and output over the last 50 years is examined through the lens of a micro-founded model that allows for changes in the behavior of the Federal Reserve and in the volatility of structural shocks. Agents are aware of the possibility of regime changes and their beliefs have an impact on the law of motion underlying the macroeconomy. The results support the view that there...
متن کاملRegime Switches , Agents ’ Beliefs , and Post - World War II U . S . Macroeconomic Dynamics Francesco Bianchi
The evolution of the U.S. economy over the last 55 years is examined through the lens of a micro-founded model that allows for changes in the behavior of the Federal Reserve and in the volatility of structural shocks. Agents are aware of the possibility of regime changes and their beliefs matter for the law of motion underlying the macroeconomy. Monetary policy is identified by repeated fluctua...
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2007
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2006.11.007