In currency crises, unlike in orderly devaluations, the financial markets dominateevents. It is shown that currency collapses (crises followed by depreciations) have hada much greater adverse impact in emerging markets (defined as relatively highincomedeveloping countries exposed to...

Stellt sich das Investitionsklima für deutsche Unternehmen seit der Krise von 1997/98 in Korea tatsächlich so positiv dar, wie Medienberichte und Wirtschaftszahlen suggerieren oder ist die Entwicklung möglicherweise nur auf einige wenige "Großeinkäufe" deutscher Großunternehmen...

[...]We begin by discussing the so-called first generation ofmodels, in which crises are viewed in the literature as theunavoidable result of unsustainable policies or fundamentalimbalances. Next, we survey the literature on the secondgeneration of models, which highlights the possibility of...

[...]A key observation is that import and export prices roughlytracked each other, with both tracking the behavior of worldtradable goods prices. Indeed, trade prices were fallingthroughout Asia by similar magnitudes, regardless of howmuch each country’s currency depreciated. For both...

[...]In our view, this apparently surprising immunity of the U.S.economy to the Asia crisis reflects the fact that the original wayof thinking about the crisis was flawed. First, it focused only ondemand-side channels and ignored the supply side. Second, thedepreciation of the Asian currencies...

Im Frühjahr 2010 hat die Eurokrise mit dem drohenden Staatsbankrott von Griechenland und Irland einen Höhepunkt erreicht. Durch hohe Milliardenkredite an diese zwei Mitgliedsländer hat die Europäische Union einen Rettungsschirm (750 Mrd. Euro) aufgespannt, unter anderem deshalb, weil...

Market participants' risk attitudes, wealth and portfolio composition influence their positions in apegged foreign currency and, therefore, may have important effects on the sustainability of currencypegs. We analyze such effects in a global game model of currency crises with continuous...

This paper studies a dynamic model of crises with timing frictions that combines the mainaspects of Morris and Shin (1998) and Frankel and Pauzner (2000). The usual arguments forexistence and uniqueness of equilibrium cannot be applied. It is shown that the model has aunique equilibrium within...

This paper analyses predictions of a simple model of currency crises in which the peg will beabandoned when the currency overvaluation hits a certain threshold, unknown to the agents. Due tolearning about the threshold, some features usually observed in the data and identified with modelswith...

In this paper we investigate whether cross-sectional information from local equity marketscontained information on devaluation expectations during the Asian crisis. We concentrate onthe information content of equity prices as these markets were in general the largest and mostliquid at the time...