This paper investigates currency crises in an optimizing general equilibrium model with overlapping generations. It is shown that a rise in government budget deficits financed by future taxes generates a decumulation of external assets, leading up to a speculative attack and forcing the monetary authorities to abandon the peg.

Annicchiarico, B., Marini, G., Piersanti, G. (2011). Budget deficits and exchange-rate crises. INTERNATIONAL ECONOMIC JOURNAL, 25(2), 285-303 [10.1080/10168737.2010.504779].

Budget deficits and exchange-rate crises

ANNICCHIARICO, BARBARA;MARINI, GIANCARLO;
2011-01-01

Abstract

This paper investigates currency crises in an optimizing general equilibrium model with overlapping generations. It is shown that a rise in government budget deficits financed by future taxes generates a decumulation of external assets, leading up to a speculative attack and forcing the monetary authorities to abandon the peg.
2011
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore SECS-P/01 - ECONOMIA POLITICA
English
Con Impact Factor ISI
Annicchiarico, B., Marini, G., Piersanti, G. (2011). Budget deficits and exchange-rate crises. INTERNATIONAL ECONOMIC JOURNAL, 25(2), 285-303 [10.1080/10168737.2010.504779].
Annicchiarico, B; Marini, G; Piersanti, G
Articolo su rivista
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/19121
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