The efficient resolution of capital account crises: how to avoid moral hazard
In: Working paper 233
6 Ergebnisse
Sortierung:
In: Working paper 233
In: The Manchester School, Band 69, Heft 4, S. 440-456
ISSN: 1467-9957
The conditions under which a policymaker might rationally signal the strength of an exchange rate commitment by revaluation are considered. We derive an intuitive result: the policymaker signals strong commitment by revaluation if initial credibility is low, but will refrain from doing so if credibility is already high, as any such signal is costly. The analysis suggests that if an exchange rate rule is intended to improve anti‐inflation credibility, then it ought to be sufficiently flexible to allow for orderly revaluations of the exchange rate against the anchor currency.
In: The globalization of the world economy 11
In: An Elgar reference collection
In: Études internationales: revue trimestrielle, Band 34, Heft 3, S. 517
ISSN: 0014-2123
In: The economic journal: the journal of the Royal Economic Society, Band 114, Heft 494, S. C130-C148
ISSN: 1468-0297
In: Bank of England Working Paper No. 349
SSRN
Working paper