Series: IMF Working Papers
Author(s): Piti Disyatat
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2001
Keywords: Currency Crisis, Speculative Attacks, Borrowing Reserves, capital controls, external borrowing, central bank, domestic currency, Monetary Policy, Central Banking, and the Supply of Money and Credit: General
This paper addresses the important question of how far a government will run down its stock of foreign reserves in a defense of a fixed exchange rate. An optimizing model of currency crisis is presented in which th...