Annicchiarico, Barbara; Marini, Giancarlo; Piersanti, … - In: International Economic Journal 25 (2011) 2, pp. 285-303
This paper investigates currency crises in an optimizing general equilibrium model with overlapping generations. It is shown that a rise in government budget deficits financed by future taxes generates a decumulation of external assets, leading up to a speculative attack and forcing the monetary...