inflation and depreciation rates. We use a first-generation type model of speculative attacks which has four key features: (i … the crises; (iii) a portion of the government's liabilities are not indexed to inflation; and (iv) there are nontradable … account for the high rates of devaluation and moderate rates of inflation often observed in the wake of currency crises. We …

inflation and depreciation rates. We use a first-generation type model of speculative attacks which has four key features: (i … the crises; (iii) a portion of the government's liabilities are not indexed to inflation; and (iv) there are nontradable … account for the high rates of devaluation and moderate rates of inflation often observed in the wake of currency crises. We …

This paper explores the implications of different strategies for financing the fiscal cost of twin crises for inflation … crises; (iii) a portion of the government's liabilities are not indexed to inflation; and (iv) there are nontradable goods … account for the high rates of devaluation and moderate rates of inflation often observed in the wake of currency crises. We …

before a currency crisis; post-devaluation inflation may exhibit little persistence, and money demand need not fall after the …