Boinet, Virginie; Napolitano, Oreste; Spagnolo, Nicola - Economics and Finance Section, School of Social … - 2002
This paper analyzes the 2002 Argentine crisis using the Jeanne and Masson (2000) model with sunspots. Testing this model empirically through a Markov-switching model suggests that self-sulfilling prophecies is a reasonable explanation for the devaluation of the peso.