18021. On Currency Crises and Contagion
- Author:
- Morris Marcel Fratzscher
- Publication Date:
- 12-2000
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- Many economists have started to concede in recent years that contagion and self-fulfilling beliefs of investors have played a crucial role in the emerging market financial crises of the 1990s. Despite the progress on the theoretical side, however, empirical models of currency crises have been shown to perform poorly (Berg and Pattillo 1998) and many economists and policy institutions have been struggling to develop adequate models to predict future financial crises (Kaminsky et al. 1997, Goldstein et al. 2000).
- Topic:
- Economics, International Trade and Finance, and Political Economy