A Model of the Joint Distribution of Banking and Exchange-Rate Crises
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Summary:
We develop a simple framework for studying the joint distribution of banking and currency crises triggered by real shocks. Our framework illustrates the fact that bank and currency collapses are related but they are not the same thing. Studying currency and bank collapses either in isolation or in perfect correlation with each other is inappropriate, producing biased estimates of the likelihood of crises.
Series:
Working Paper No. 2001/213
Subject:
Banking Central banks Conventional peg Currencies Domestic credit Exchange rates Foreign exchange International reserves Money
English
Publication Date:
December 1, 2001
ISBN/ISSN:
9781451874945/1018-5941
Stock No:
WPIEA2132001
Pages:
32
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