Jagdeep S. Bhandari
Institutional Affiliation: Florida Coastal School of Law
NBER Working Papers and Publications
|November 1991||Speculative Attacks and Models of Balance-of-Payments Crises|
with , : w3919
This paper reviews recent developments in the theoretical and empirical analysis of balance-of-payments crises. A simple analytical model highlighting the process leading to such crises is first developed. The basic framework is then extended to deal with a variety of issues, such as: alternative post-collapse regimes, uncertainty, real sector effects, external borrowing and capital controls, imperfect asset substitutability, sticky prices, and endogenous policy switches. Empirical evidence on the collapse of exchange rate regimes is also examined, and the major implications of the analysis for macroeconomic policy are discussed.
Published: Pierre-Richard Agenor & Jagdeep S. Bhandari & Robert P. Flood, 1992. "Speculative Attacks and Models of Balance of Payments Crises," Staff Papers - International Monetary Fund, vol 39(2).