This paper discusses within a common analytical framework the logical and analytical links between theories of exchange rate crises that model the abandonment of a peg as an optimizing decision by rational policy makers, and theories that focus on the dynamics of speculative attacks when policies are incoherent with the indefinite defense of the current nominal parity.
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Paper provided by Yale - Economic Growth Center in its series Papers with number
752.
Find related papers by JEL classification: E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System F30 - International Economics - - International Finance - - - General F31 - International Economics - - International Finance - - - Foreign Exchange G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
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