Self-Fulfilling Currency Crises: The Role of Interest Rates
نویسندگان
چکیده
منابع مشابه
Self-Fulfilling Currency Crises: The Role of Interest Rates
We develop a model of currency crises, in which traders are heterogeneously informed, and interest rates are endogenously determined in a noisy rational expectations equilibrium. In our model, multiple equilibria result from distinct roles an interest rate plays in determining domestic asset market allocations and the devaluation outcome. Except for special cases, this finding is not affected b...
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ژورنال
عنوان ژورنال: American Economic Review
سال: 2006
ISSN: 0002-8282
DOI: 10.1257/aer.96.5.1769