Rochester Government Finance in the Wake of Currency Crises Government Finance in the Wake of Currency Crises *
نویسندگان
چکیده
This paper addresses two questions: (i) how do governments actually pay for the Þscal costs associated with currency crises; and (ii) what are the implications of different Þnancing methods for post-crisis rates of inßation and depreciation? We study these questions using a general equilibrium model in which a currency crisis is triggered by prospective government deÞcits. We then use our model in conjunction with Þscal data to interpret government Þnancing in the wake of three recent currency crises: Korea (1997), Mexico (1994) and Turkey (2001). J.E.L. ClassiÞcation: F31
منابع مشابه
Government Finance in the Wake of Currency
This paper addresses two questions: (i) how do governments actually pay for the Þscal costs associated with currency crises; and (ii) what are the implications of different Þnancing methods for post-crisis rates of inßation and depreciation? We study these questions using a general equilibrium model in which a currency crisis is triggered by prospective government deÞcits. We then use our model...
متن کاملGovernment Finance in the Wake of Currency Crises∗
We address three questions: (i) Can classical models be reconciled with the fact that many crises are marked by high rates of depreciation and small increases in seignorage revenue? (ii) What are the implications of different financing methods for post-crisis rates of inflation and depreciation? (iii) How do governments pay for the fiscal costs associated with currency crises? To study these qu...
متن کاملSimultaneous Occurrence of Banking Debt and Currency Crises (Triple Crises) in Iranian Economy and Its Determining Factors During the Period 1980-2017
In monetary and financial literature, financial crises include a wide range of crises. But in general, there are three important types of financial crisis, including the currency crisis. The banking crisis and the debt crisis. The aim of this study is to simultaneously analyze the occurrence of banking, debt and currency crises, known as the three crises in Iran. For this purpose, first to dete...
متن کاملNber Working Paper Series Government Finance in the Wake of Currency Crises
We are grateful for an NSF grant through the National Bureau of Economic Research and a grant from the World Bank. The opinions in this paper are those of the authors and not necessarily those of the Federal Reserve Bank of Chicago or the World Bank. We thank Martin Bodenstein, Yuliya Mescheryakova and Jeffrey Wood for valuable comments and Selim Elekdag, Su Youne Lee and Mi Hwa Park for invalu...
متن کاملWhy do Banks Fail before BOP Crises? An East Asian Perspective
Recent emerging market experience highlights that, in general, banking crises begin before currency crises. While empirical research is yet to establish the direction of causality, BOP crises have been interpreted and modeled only as consequence of financial sector meltdowns in the recent crisis literature. The evidence points out that equity and real estate prices decline well in advance of BO...
متن کامل