This paper discusses within a common analytical framework the logical and analytical links between theories of exchange rate crises that model the abandonment of a peg as an optimizing decision by rational policy makers, and theories that focus on the dynamics of speculative attacks when...

This paper estimates a simple consumption-smoothing model of the French current account, and examines its capacity to predict recent developments in France's external performance.

This paper employs a stochastic option-pricing models to investigate when should an emerging market engage in financial liberalisation in a framework inwhich policymakers choose an optimal exchange rate target aimed at minimising price volatility and the risk of a debt crisis.

Using a search theoretic model of money, we explore the conditions under which two currencies, domestic and foreign, will co-exist depsite legal restrictions on the use of foreign currency for internal trade. We then study how changes in government policy regarding enforcement of currency laws...

Existing models of self-fulfilling crises fail to explain both the onset and the abruptness of recent currency attacks. In this apper we follow the suggestion by Myerson (1998) that in games with a very large number of players 'a more realistic model should admit some uncertainty about the...

Shortly after the collapse of Bretton Woods, stock models replaced the traditional flow approach for modeling short-run exchange rates. However, after 20 years, portfolio balance and other asset models have not improved our understanding of the short-run behavior of exchange rates. Perhaps it is...