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Currency Crises and Foreign Reserves
By:Mr. Piti Disyatat
Published on 2001-02-01 by International Monetary Fund

This paper addresses the important question of how far a government will run down its stock of foreign reserves in a defense of a fixed exchange rate. An optimizing model of currency crisis is presented in which the decision of whether or not to borrow in a defense of a peg is explicitly analyzed. The threshold level of reserves is then determined endogenously and shown to be a function of fundamental economic variables. The analysis also demonstrates how an increase in the level of reserves, a credit-rating upgrade, or the imposition of capital controls can remove the multiplicity of equilibria.
This Book was ranked at 6 by Google Books for keyword Currency crisis.
Book ID of Currency Crises and Foreign Reserves's Books is 6swIIUmsO5cC, Book which was written byMr. Piti Disyatathave ETAG "H7DqvKQnlQE"
Book which was published by International Monetary Fund since 2001-02-01 have ISBNs, ISBN 13 Code is 9781452768465 and ISBN 10 Code is 1452768463
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Book which have "24 Pages" is Printed at BOOK under CategoryBusiness and Economics
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