FISCAL DEFICITS AND CURRENCY CRISES

Marini GiancarloPiersanti Giovanni
CEIS Working Papers
This paper investigates currency and financial crises in an optimizing general equilibrium model. It is shown that a rise in current and expected future budget deficits generates a real exchange rate appreciation and a decumulation of external assets, lea
Number: 140
Date: Thursday 01 March 2001
Revision Date: Thursday 01 March 2001