Currency crises, sunspots and exchange-rate overshooting

This paper provides a macroeconomic framework for theoretical and empirical analysis of the role of sunspots and shock-dependent expectations in currency crises. The model distinguishes between macroeconomic fundamentals and shock expectations as cause of currency crises. It is assumed that good pri...

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Bibliographic Details
Main Author: Inchauspe, Julian
Format: Journal Article
Published: World Business Institute 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/43889