Are Currency Crises Predictable?

December 1, 1997

Preview Citation

Format: Chicago

Rodrigo O. Valdes, and Ilan Goldfajn. Are Currency Crises Predictable?, (USA: International Monetary Fund, 1997) accessed November 9, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper studies whether exchange rate expectations and overvaluations are predictors of currency crises. The results suggest that overvaluation has predictive power in explaining crises. However, although expected depreciation obtained from survey data partially takes different measures of exchange rate misalignment into consideration, expectations fail to anticipate currency crises.

Subject: Currency crises, Cyclical indicators, Economic growth, Exchange rates, Financial crises, Foreign exchange, Real exchange rates

Keywords: Balance-of-payments crisis, Crisis, Crisis episode, Crisis month, Currency crises, Cyclical indicators, Devaluation, Devaluation measure, Devaluation rate, Exchange rate crisis, Exchange rates, Misalignment estimate, Nominal devaluation, Overvaluation measure, Real exchange rates, WP

Publication Details

Pages:

19
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 1997/159
Stock No:

WPIEA1591997
ISBN:

9781451857634
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers