Credibility, Reputation, and the Mexican Peso Crisis
AbstractA model emphasizing the tradeoff between the costs of changes of domestic interest rates and exchange rate stability is used to assess the role of credibility and reputational factors in the lead-up to the December 1994 crisis of the Mexican peso. Devaluation expectations are decomposed into the probability that the authorities do not truly put a high weight on exchange rate stability and the probability that an exogenous shock will make a devaluation the preferred policy. Estimates indicate that prior to the peso collapse there was no significant increase in devaluation fears and no perceived shift in the authorities' policy preferences. But the increase in the differential that occurred after the devaluation may have resulted from such a shift.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 31 (1999)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hefeker, Carsten, 2004.
"Default, Electoral Uncertainty and the Choice of Exchange Regime,"
HWWA Discussion Papers
298, Hamburg Institute of International Economics (HWWA).
- Hefeker, Carsten, 2007. "Default, Electoral Uncertainty and the Choice of Exchange Regime," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 13, Verein für Socialpolitik, Research Committee Development Economics.
- Khan, haider, 2008. "Analyzing Poverty Impact of Trade Liberalization Policies in CGE Models: Theory and Some Policy Experiments in Agricultural and Non-agricultural Sectors in South Asia," MPRA Paper 7609, University Library of Munich, Germany, revised Mar 2008.
- Bratsiotis, George J. & Robinson, Wayne, 2004. "Economic fundamentals and self-fulfilling crises: further evidence from Mexico," Journal of International Money and Finance, Elsevier, vol. 23(4), pages 595-613, June.
- Simón Sosvilla-Rivero & Francisco Pérez-Bermejo, . "Credibility and Duration in Target Zones: Evidence from the EMS," Working Papers 2003-19, FEDEA.
- Ratti, Ronald A. & Seo, Jeonghee, 2003. "Multiple equilibria and currency crisis: evidence for Korea," Journal of International Money and Finance, Elsevier, vol. 22(5), pages 681-696, October.
- G J Bratsiotis & W Robinson, 2002.
"Economic Fundamentals and Self-Fulfilling Crises: Some Evidence from Mexico,"
Centre for Growth and Business Cycle Research Discussion Paper Series
23, Economics, The Univeristy of Manchester.
- G J Bratsiotis & W Robinson, 2002. "Economic Fundamentals and Self-Fulfilling Crises: Some Evidence from Mexico," The School of Economics Discussion Paper Series 0214, Economics, The University of Manchester.
- Joseph A. Whitt, Jr., 1996. "The Mexican peso crisis," Economic Review, Federal Reserve Bank of Atlanta, issue Jan, pages 1-20.
- Kenneth N. Kuttner, 2004. "The role of policy rules in inflation targeting," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 89-112.
- Vladimir Klyuev, 2001. "A Model of Exchange Rate Regime Choice in the Transitional Economies of Central and Eastern Europe," IMF Working Papers 01/140, International Monetary Fund.
- Pierre-Richard Agénor, 2001.
"Monetary Policy Under Flexible Exchange Rates: an Introduction to Inflation Targeting,"
Working Papers Central Bank of Chile
124, Central Bank of Chile.
- Pierre-Richard Agénor, 2002. "Monetary Policy under Flexible Exchange Rates: An Introduction to Inflation Targeting," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.), Inflation Targeting: Desing, Performance, Challenges, edition 1, volume 5, chapter 3, pages 079-170 Central Bank of Chile.
- Agenor, Pierre-Richard, 2000. "Monetary policy under flexible exchange rates - an introduction to inflation targeting," Policy Research Working Paper Series 2511, The World Bank.
- Janine Aron & Ibrahim Elbadawi, 1999. "Reflections on the South African rand crisis of 1996 and policy consequences," Economics Series Working Papers WPS/1999-13, University of Oxford, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.