Bleaney, Michael; Bougheas, Spiros; Skamnelos, Ilias - In: Journal of International Money and Finance 27 (2008) 5, pp. 695-706
A second-generation model of currency crises is combined with a standard banking model. In a pegged exchange rate regime, after funds have been committed to the banks, news arrives about the quality of the banks' assets and about the exchange rate fundamentals. A run on the banks may cause a...