A Model of the Interactions between Banking Crises and Currency Crises

A second-generation model of currency crises is combined with a standard banking model. In a pegged exchange rate regime, after funds have been committed to the banks, news arrives about the quality of the banks' assets and about the exchange rate fundamentals. A run on the banks may cause a cu...

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Bibliographic Details
Main Authors:	Bleaney, Michael, Bougheas, Spiros, Skamnelos, Ilias
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Foreign Exchange F310 International Monetary Arrangements and Institutions F330 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210
Online Access:	http://hdl.handle.net/10986/5425

id	okr-10986-5425
recordtype	oai_dc
spelling	okr-10986-54252021-04-23T14:02:22Z A Model of the Interactions between Banking Crises and Currency Crises Bleaney, Michael Bougheas, Spiros Skamnelos, Ilias Foreign Exchange F310 International Monetary Arrangements and Institutions F330 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 A second-generation model of currency crises is combined with a standard banking model. In a pegged exchange rate regime, after funds have been committed to the banks, news arrives about the quality of the banks' assets and about the exchange rate fundamentals. A run on the banks may cause a currency crisis, or vice versa. There are multiple equilibria (with either twin crises or no crisis), depending on depositors' expectations of other depositors' actions. Suspension of deposit convertibility can prevent a speculative attack on the currency, but last resort lending to solvent banks can induce one. 2012-03-30T07:32:46Z 2012-03-30T07:32:46Z 2008 Journal Article Journal of International Money and Finance 02615606 http://hdl.handle.net/10986/5425 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Foreign Exchange F310 International Monetary Arrangements and Institutions F330 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210
spellingShingle	Foreign Exchange F310 International Monetary Arrangements and Institutions F330 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Bleaney, Michael Bougheas, Spiros Skamnelos, Ilias A Model of the Interactions between Banking Crises and Currency Crises
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	A second-generation model of currency crises is combined with a standard banking model. In a pegged exchange rate regime, after funds have been committed to the banks, news arrives about the quality of the banks' assets and about the exchange rate fundamentals. A run on the banks may cause a currency crisis, or vice versa. There are multiple equilibria (with either twin crises or no crisis), depending on depositors' expectations of other depositors' actions. Suspension of deposit convertibility can prevent a speculative attack on the currency, but last resort lending to solvent banks can induce one.
format	Journal Article
author	Bleaney, Michael Bougheas, Spiros Skamnelos, Ilias
author_facet	Bleaney, Michael Bougheas, Spiros Skamnelos, Ilias
author_sort	Bleaney, Michael
title	A Model of the Interactions between Banking Crises and Currency Crises
title_short	A Model of the Interactions between Banking Crises and Currency Crises
title_full	A Model of the Interactions between Banking Crises and Currency Crises
title_fullStr	A Model of the Interactions between Banking Crises and Currency Crises
title_full_unstemmed	A Model of the Interactions between Banking Crises and Currency Crises
title_sort	model of the interactions between banking crises and currency crises
publishDate	2012
url	http://hdl.handle.net/10986/5425
_version_	1764395009054867456

A Model of the Interactions between Banking Crises and Currency Crises

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