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Sunday, August 9, 2020 | History

2 edition of Prospective deficits and the Asian currency crisis found in the catalog.

Prospective deficits and the Asian currency crisis

Craig Burnside

Prospective deficits and the Asian currency crisis

by Craig Burnside

  • 341 Want to read
  • 36 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Foreign exchange rates -- Asia -- Econometric models.,
  • Bank failures -- Government policy -- Asia -- Econometric models.,
  • Budget deficits -- Asia -- Econometric models.,
  • Financial crises -- Asia -- Econometric models.,
  • Bank reserves -- Asia -- Econometric models.

  • Edition Notes

    Other titlesAsian currency crisis
    StatementCraig Burnside, Martin Eichenbaum, Sergio Rebelo.
    SeriesNBER working paper series -- working paper 6758, Working paper series (National Bureau of Economic Research) -- working paper no. 6758.
    ContributionsEichenbaum, Martin S., Rebelo, Sergio., National Bureau of Economic Research.
    Classifications
    LC ClassificationsHB1 .W654 no. 6758
    The Physical Object
    Pagination47, [6] p. :
    Number of Pages47
    ID Numbers
    Open LibraryOL22401747M

    The authors argue that the recent Asian currency crisis was caused by large prospective fiscal deficits associated with implicit bailout guarantees to failing banking systems. They articulate this view using a simple dynamic general equilibrium model, whose key feature is that a speculative attack is inevitable once the present value of future. prediction is inconsistent with the Asian currency crisis. This inconsistency led many observers to dismiss fiscal explanations of this crisis. However, Corsetti, Pesenti and Roubini (), Burnside, Eichenbaum and Rebelo (a), and Lahiri and Végh () show that bad news about prospective deficits can trigger a currency crisis. Under.

    Currency crisis is the situation when financial market investors lose confidence in a given currency. Prospective deficits and the Asian currency crisis. Journal of political Economy, (6), Flood, R., & Marion, N. (). Perspectives on the recent currency crisis literature.   This Economic Letter is based on a presentation Mark Spiegel prepared for a panel on “Optimal Currency Arrangements for Emerging Market Economies: The Experience of Latin America and Asia,” organized by the Latin American and Asian Economics and Business Association on J , in Tokyo, Japan.. Before Argentina’s currency crisis erupted this year, renewed interest in .

    Current account deficit as a percentage of GDP for the countries shown, – Institutional defenses also play a critical role in scaling a country’s ability to fend off crisis. This is typically measured with foreign currency reserves, which central banks can use to defend outflows and combat currency . The Evolution of Asian Currencies During the Financial Crisis. The Asian financial crisis started with the devaluation of Thailand’s Bath, which took place on July 2, , a 15 to 20 percent devaluation that occurred two months after this currency started to suffer from a massive speculative attack and a little more than a month after the.


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Prospective deficits and the Asian currency crisis by Craig Burnside Download PDF EPUB FB2

This paper argues that a principal cause of the Asian currency crisis was large prospective deficits associated with implicit bailout guarantees to failing banking systems. The expectation that these future deficits would be at least partially financed by seigniorage revenues or an inflation tax on outstanding nominal debt led to a collapse of the fixed exchange rate regimes in by: Downloadable (with restrictions).

This paper argues that a principal cause of the Asian currency crisis was large prospective deficits associated with implicit bailout guarantees to failing banking systems. The expectation that these future deficits would be at least partially financed by seigniorage revenues or an inflation tax on outstanding nominal debt led to a collapse of the fixed.

Prospective Deficits and the Asian Currency Crisis Craig Burnside, Martin Eichenbaum, Sergio Rebelo. NBER Working Paper No. Issued in October NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics This paper argues that the recent Southeast Asian currency crisis was caused by large prospective deficits associated with implicit Cited by: The recent Asian currency crisis was caused by large prospective fiscal Prospective deficits and the Asian currency crisis book associated with implicit bailout guarantees to failing banking systems.

Absent the political will to raise taxes or cut spending, governments must resort to seignorage revenues to pay for the bailout of the banking system. Get this from a library. Prospective deficits and the Asian currency crisis. [Craig Burnside; Martin S Eichenbaum; Sergio Rebelo; National Bureau of Economic Research.] -- Abstract: This paper argues that the recent Southeast Asian currency crisis was caused by large prospective deficits associated with implicit bailout guarantees to failing banking systems.

Prospective deficits and the asian currency crisis (English) Abstract. The authors argue that the recent Asian currency crisis was caused by large prospective fiscal deficits associated with implicit bailout guarantees to failing banking systems.

They articulate this view using a simple dynamic general equilibrium model, Cited by: This paper argues that the recent Asian currency crisis was caused by large prospective deficits associated with implicit bail out guaranteed to guarantees to failing banking systems. We articulate this view using a simple dynamic general equilibrium model whose key feature is that a speculative attack is inevitable once the present value of future government deficit rises.

This paper argues that a principal cause of the Asian currency crisis was large prospective deficits associated with implicit bailout guarantees to failing banking systems. Asian currency crisis was caused by large prospective but it can affect its timing.

The longer the delay, the fiscal deficits associated with implicit bailout guarantees higher inflation will be under flexible exchange rates. to failing banking systems. The authors present empirical evidence in support of. Prospective Deficits and the Asian Currency Crisis Craig Burnside, Martin Eichenbaum and Sergio Rebelo Working Papers Series Research Department (WP) Federal Reserve Bank of Chicago Working Paper Series.

Prospective De cits and the Asian Currency Crisis Craig Burnside¤, Martin Eichenbaumyand Sergio Rebeloz November 5, Search this site: Humanities.

Architecture and Environmental Design; Art History. Prospective Deficits and the Asian Currency Crisis. Article (PDF Available) in Journal of Political Economy February with 42 Reads How we measure 'reads'. Burnside, Craig, Martin Eichenbaum, and Sergio Rebelo. “Prospective Deficits and the Asian Currency Crisis.” Northwestern University, manuscript, This paper argues that the recent Southeast Asian currency crisis was caused by large prospective deficits associated with implicit bailout guarantees to failing banking systems.

We articulate this view using a simple dynamic general equilibrium model whose key feature is that a speculative attack is inevitable once the present value of future.

These models show that currency crises can occur due to certain government policy actions, self-fulfilling expectations of market participants, and possibilities of multiple equilibriums, even in the absence of fundamental weaknesses.

The theoretical currency crisis literature has expanded further since the Asian financial crisis. This paper argues that a principal cause of the Asian currency crisis was large prospective deficits associated with implicit bailout guarantees to failing banking systems.

The expectation that these future deficits would be at least partially financed by seigniorage revenues or an inflation tax on outstanding nominal debt led to a. Prospective Deficits and the Asian Currency Crisis.

View / Download Mb. Date. Books & Media Books, journals, films & more; Articles From journals, newspapers, magazines; Prospective Deficits and the Asian Currency Crisis. View / Download Mb. Date. The –98 Asian financial crisis began in Thailand and then quickly spread to neighbouring economies.

It began as a currency crisis when Bangkok unpegged the Thai baht from the U.S. dollar, setting off a series of currency devaluations and massive flights of capital. In the first six months, the value of the Indonesian rupiah was down by 80 percent, the Thai baht by more than 50 percent.

Asian Crisis of Southeast Asia was home to the tiger economies—including Singapore, Malaysia, China, and South Korea—and the Southeast Asian crisis. Foreign investments poured in for years.

Prospective Deficits and the Asian Currency Crisis By Craig Burnside, Martin Eichenbaum, Sergio Rebelo This paper argues that the recent Asian currency crisis was caused by large prospective de cits associated with implicit bailout guarantees to failing banking systems.

Prospective Deficits and the Asian Currency Crisis Craig Burnside World Bank Martin Eichenbaum Northwestern University, National Bureau of Economic Research, and Federal Reserve Bank of Chicago Sergio Rebelo Northwestern University and National Bureau of Economic Research This paper argues that a principal cause of the Asian currency.ASIA'S CURRENCY CRISIS—the opening act of which was the July 2, devaluation of the Thai baht—dampened significantly the prospects for global growth while unsettling financial markets.

Even today, the fragile situation in Asia constitutes a potential systemic threat, despite the progress that has been wrought through the unprecedented.A currency crisis is a situation in which serious doubt exists as to whether a country's central bank has sufficient foreign exchange reserves to maintain the country's fixed exchange crisis is often accompanied by a speculative attack in the foreign exchange market.

A currency crisis results from chronic balance of payments deficits, and thus is also called a balance of payments crisis.