Fundamentals, Contagion and Currency Crises
Author | : Mark Kruger |
Publisher | : |
Total Pages | : 28 |
Release | : 1998 |
ISBN-10 | : 0662270193 |
ISBN-13 | : 9780662270195 |
Rating | : 4/5 (93 Downloads) |
Download or read book Fundamentals, Contagion and Currency Crises written by Mark Kruger and published by . This book was released on 1998 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the determinants of currency crises in Latin America, Asia, and Africa. It asks two basic questions: are currency crises linked to economic fundamentals, and is there evidence of a contagion effect after controlling for the potential effects of economic fundamentals. The examination uses pooled annual data for 19 developing countries spanning the period 1977-93. Economic variables considered include the growth rate of domestic credit, real exchange rate misalignment, the relation of the M2 monetary aggregate to international reserves, and fiscal or current account deficits.