TY  - JOUR
AU  - Obstfeld,Maurice
TI  - Models of Currency Crises with Self-Fulfilling Features
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5285
PY  - 1997
Y2  - February 1997
UR  - http://www.nber.org/papers/w5285
L1  - http://www.nber.org/papers/w5285.pdf
N1  - Author contact info:
Maurice Obstfeld
Department of Economics
University of California, Berkeley
530 Evans Hall #3880
Berkeley, CA 94720-3880
Tel: 510/643-9646
Fax: 510/642-6615
E-Mail: obstfeld@econ.berkeley.edu
AB  - The discomfort a government suffers from speculation against its currency determines the strategic incentives of speculators and the scope for multiple currency-market equilibria.  After describing an illustrative model in which high unemployment may cause an exchange- rate crisis with self-fulfilling features, the paper reviews some other self-reinforcing mechanisms.  Recent econometric evidence seems to support the practical importance of these mechanisms.
ER  -