IMF Working Papers

Speculative Attacks and Models of Balance of Payments Crises

By Robert P Flood, Jagdeep S. Bhandari, Pierre-Richard Agénor

October 1, 1991

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Format: Chicago

Robert P Flood, Jagdeep S. Bhandari, and Pierre-Richard Agénor. Speculative Attacks and Models of Balance of Payments Crises, (USA: International Monetary Fund, 1991) accessed September 26, 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 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 discussed.

Subject: Conventional peg, Domestic credit, Exchange rate arrangements, Exchange rates, Foreign exchange, Money, Real exchange rates

Keywords: Balance of payments, Balance-of-payments crisis, Chilean peso, Conventional peg, Credit creation, Domestic credit, Exchange rate, Exchange rate arrangements, Exchange rate commitment, Exchange rate crisis, Exchange rate differential time, Exchange rates, Inflation rate, Mexican peso, Money stock, Nominal exchange rate, Rate depreciation, Real exchange rates, Regime shift, WP

Publication Details

  • Pages:

    64

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1991/099

  • Stock No:

    WPIEA0991991

  • ISBN:

    9781451852189

  • ISSN:

    1018-5941

Notes

Also published in Staff Papers, Vol. 39, No. 2, June 1992.

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