Speculative Attacks and Models of Balance-of-Payments Crises

70 Pages Posted: 4 Jul 2004 Last revised: 18 Sep 2022

See all articles by Pierre-Richard Agenor

Pierre-Richard Agenor

The University of Manchester - School of Social Sciences

Jagdeep S. Bhandari

Wake Forest University - School of Law; International Monetary Fund (IMF)

Robert P. Flood

International Monetary Fund (IMF) - Research Department; CENTRUM Business School; National Bureau of Economic Research (NBER)

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Date Written: November 1991

Abstract

This paper reviews recent developments in the theoretical and empirical analysis of balance-of-payments crises. A simple analytical model highlighting the process leading to such crises is first developed. The basic framework is then extended to deal with a variety of issues, such as: alternative post-collapse regimes, uncertainty, real sector effects, external borrowing and capital controls, imperfect asset substitutability, sticky prices, and endogenous policy switches. Empirical evidence on the collapse of exchange rate regimes is also examined, and the major implications of the analysis for macroeconomic policy are discussed.

Suggested Citation

Agenor, Pierre-Richard and Bhandari, Jagdeep S. and Flood, Robert P., Speculative Attacks and Models of Balance-of-Payments Crises (November 1991). NBER Working Paper No. w3919, Available at SSRN: https://ssrn.com/abstract=227357

Pierre-Richard Agenor (Contact Author)

The University of Manchester - School of Social Sciences ( email )

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Jagdeep S. Bhandari

Wake Forest University - School of Law ( email )

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Robert P. Flood

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CENTRUM Business School

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