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Partial Delegation in a Model of Currency Crisis

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  • Virginie Boinet

Abstract

Stressing the inßuence of expected devaluation on currency crises, this paper shows that, in a fixed exchange-rate system with an escape clause, partial delegation of exchange-rate policy to an inßation-averse central banker reduces the probability of crisis.

Suggested Citation

  • Virginie Boinet, 2002. "Partial Delegation in a Model of Currency Crisis," Economics and Finance Discussion Papers 02-07, Economics and Finance Section, School of Social Sciences, Brunel University.
    • Handle: RePEc:bru:bruedp:02-07
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    File URL: http://www.brunel.ac.uk/329/efwps/02-07.pdf
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