Corsetti, Giancarlo; Guimarães, Bernardo; Roubini, Nouriel - European University Institute / Department of Economics; … - 2006
This paper analyzes the trade-off between official liquidity provision and debtor moral hazard ininternational financial crises. In the model, crises are caused by the interaction of bad fundamentals,self-fulfilling runs and policies by three classes of optimizing agents: international...
