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Indicators of Currency Crisis: Empirical Analysis of some Emerging and Transition Economies

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  • Malgorzata Jakubiak

Abstract

This paper focuses on the measurement of a contemporaneous currency crisis. The analysis covers 14 "emerging" or "transforming" economies that experienced episodes of currency crises over the last decade. It adds to well-known examples relatively littleknown evidence on the crisis depth in some of the CIS countries. Following the Eichengreen, Rose, and Wyplosz (1994) definition of a currency crisis, the emphasis is primarily put on the examination of changes in relative reserves, exchange rates, and real interest rates during periods of exchange rate pressure. Other measures of the depth of a currency crisis as well as measures of external vulnerability are also discussed. The findings support the adequacy of the Eichengreen, Rose, and Wyplosz (1994) definition in analyzing crisis developments in emerging economies.

Suggested Citation

  • Malgorzata Jakubiak, 2000. "Indicators of Currency Crisis: Empirical Analysis of some Emerging and Transition Economies," CASE Network Studies and Analyses 0218, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0218
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    Cited by:

    1. Marek Dabrowski & Rafal Antczak & Malgorzata Markiewicz & Artur Radziwill & Marcin Sasin, 2001. "The Episodes of Currency Crises in the European Transition Economies," CASE Network Reports 0040, CASE-Center for Social and Economic Research.

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    Keywords

    transition economies; currency crisis;

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