A Simple Model of Monetary Policy and Currency Crises

Détails

ID Serval
serval:BIB_0D5F48B756EF
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
A Simple Model of Monetary Policy and Currency Crises
Périodique
European Economic Review, Papers and Proceedings
Auteur⸱e⸱s
Aghion P., Bacchetta P., Banerjee A.
ISSN
0014-2921
Statut éditorial
Publié
Date de publication
2000
Peer-reviewed
Oui
Volume
44
Numéro
4-6
Pages
728-738
Langue
anglais
Résumé
This paper analyzes the optimal interest rate policy in currency crises. Firms are credit constrained and have debt in domestic and foreign currency, a situation that may easily lead to a currency crisis. An interest rate increase has an ambiguous effect on firms since it both makes more difficult to borrow and may decrease the foreign currency debt burden. In some cases it is actually best to decrease the interest rate. We also show how these issues are related to development of the financial system.
Mots-clé
Monetary policy, Foreign currency debt, Currency crisis
Web of science
Création de la notice
19/11/2007 9:28
Dernière modification de la notice
20/08/2019 12:34
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