Arbeitspapier
A Simple Model of Monetary Pollicy and Currency Crises
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.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 99.05
- Classification
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Wirtschaft
- Subject
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Geldpolitik
Währungskrise
Wirtschaftsmodell
Theorie
- Event
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Geistige Schöpfung
- (who)
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Aghion, Philippe
Bacchetta, Philippe
Banerjee, Abhijit
- Event
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Veröffentlichung
- (who)
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Swiss National Bank, Study Center Gerzensee
- (where)
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Gerzensee
- (when)
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1999
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Aghion, Philippe
- Bacchetta, Philippe
- Banerjee, Abhijit
- Swiss National Bank, Study Center Gerzensee
Time of origin
- 1999
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