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Contagious Currency Crises: First Tests

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Author Info
Eichengreen, Barry
Rose, Andrew
Wyplosz, Charles

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Abstract

The authors address the fact that the incidence of speculative attacks tends to be temporally correlated; that is, currency crises appear to pass 'contagiously' from one country to another. The paper provides a survey of the theoretical literature. The authors also provide empirical evidence consistent with the contagious nature of currency crises. They estimate that the existence of a currency crisis elsewhere in the world (whether successful or not) raises the probability of an attack on the domestic currency by 8 percent, even after taking account of a variety of domestic political and economic factors. Copyright 1996 by The editors of the Scandinavian Journal of Economics.

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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 98 (1996)
Issue (Month): 4 (December)
Pages: 463-84
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Handle: RePEc:bla:scandj:v:98:y:1996:i:4:p:463-84

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0347-0520

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This page was last updated on 2009-10-26.


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