Very Preliminary Comments Most Welcome Currency Crises and Capital Controls: A Selective Survey
نویسنده
چکیده
This survey discusses theoretical models of speculative attack and currency crises, and reviews the empirical evidence. The paper outlines the correspondence of the models to different cases of crisis (e.g. Latin American crises, the ERM breakdown, and the recent Asian crisis), and points to gaps in the theoretical literature for explaining the Asian crisis. The large economic costs resulting from the severe depreciation of Asian currencies and general problems with macroeconomic management in the presence of large capital flows has recently led to proposals for limiting capital flows. The paper reviews the arguments and models for and against capital controls. JEL Classification: F31, F47
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