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Topic: Currency crisis

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	(via CobWeb/3.1 planetlab2.cs.unc.edu) (Site not responding. Last check: 2007-10-13)
		Given this stylized representation of the situation, the logic of currency crisis was the same as that of speculative attack on a commodity stock.
		In that sense the crisis is driven by economic fundamentals.
		The slide toward crisis began with an export slowdown in the region, partly due to the appreciation of the dollar (to which the target currencies were pegged) against the yen, partly to specific developments in key industries, partly to growing competition from China.
	web.mit.edu.cob-web.org:8888 /krugman/www/crises.html (8765 words)

	FRBSF: Economic Letter - How Do Currency Crises Spread? (8/28/98)
		We define our currency crisis measure as a simple binary variable indicator of crisis victims (1 if a country is a victim, 0 if it is not) determined from journalistic and academic histories of the various episodes.
		In particular, it is systematically higher for crisis countries at all reasonable levels of statistical significance, i.e., countries that become "infected" by the crisis have closer trade linkages to the "first victim" than countries that escape the disease.
		Moreover, If countries are more at risk to the spread of currency crisis than is apparent by looking just at domestic economic factors, a lower threshold for international or regional assistance is also warranted in order to limit the spread of speculative attacks.
	www.frbsf.org /econrsrch/wklyltr/wklyltr98/el98-25.html (2013 words)

	[No title]
		First of all, many currency crises clearly do reflect a basic inconsistency between domestic and exchange rate policy; the specific, highly simplified form of that discrepancy in the canonical model may be viewed as a metaphor for the more complex but often equally stark policy incoherence of many exchange regimes.
		A situation in which a crisis could happen but need not presents speculators with a "one-way option": they will reap a capital gain (or, if you measure it in foreign currency, avoid a capital loss) by selling domestic currency if the exchange regime collapses, but will not suffer an equivalent loss if it does not.
		Contagion The currency crises of the 1990s have consisted of three regional "waves": the ERM crises in Europe from 1992-3, the Latin American crises of 1994-5, and the Asian crises currently in progress.
	pages.slu.edu /faculty/strausjk/Currencycrisis1.doc (8670 words)

	II Journal: Global Implications of Southeast Asia's Currency Crisis
		During the long years when the dollar was weak against the yen (the currency of Southeast Asia's largest foreign investor and trade partner), the region's export competitiveness and investment attractiveness, based on its cheap dollar-linked currencies and absence of currency risk, proved extremely attractive to foreign capital.
		The initial 10 to 25 percent fall in these currencies (in comparison with the 35 percent fall in the baht) was in line with similar depreciations by European currencies against the U.S. dollar over the past year.
		If this crisis serves as a "wake-up call" to these countries to get their financial houses in order and increases their export and asset competitiveness, it could even trigger more efficient growth and attract more foreign capital in the near future.
	www.umich.edu /~iinet/journal/vol5no2/lim.htm (3065 words)

	[No title]
		The main goal is to emphasize the role of the currencies of the United States, Japan and Germany and volatility of the exchange rates of these currencies as an essential element in determining the cause of the Asian crisis.
		The crisis in Chile and Argentina in the 1980’s and the ERM in 1992 led to the development of second-generation models, which emphasized the existence of multiple equilibria in the foreign markets and the possibility of having crises as self-fulfilling outcomes.
		Unlike a pure currency board, commercial banks continued to be required to hold their reserves at the central bank, and the central bank remained responsible for bank supervision and for the health of the banking system.
	www.huizenga.nova.edu /olson/TheAsianCurrencyCrisis.doc (8713 words)

	Regional Review: Anatomy of a Currency Crisis
		Thus, stage one of the crisis is expected to cut Japan's already unsatisfactory growth by one-half to three-quarters of 1 percentage point in 1998.
		To defend its currency, the real, Brazil has recently announced a budget expected to reduce GDP growth next year from an anticipated 4 percent to 1 percent or less.
		The fallout from the currency crisis will reach New England through reduced net exports to the devaluing countries and through its impact on the earnings of regional firms with investments in the affected areas.
	www.bos.frb.org /economic/nerr/rr1997/fall/litt97_4.htm (3199 words)

	Currency Crises and Capital Flight
		When the currency is devalued, the rate of return on foreign assets may fall, especially if investors had anticipated a devaluation and had adjusted their expectations accordingly.
		Once investors surmise that a crisis may be possible in the near future and react with a change in their expected exchange rate, there will be a resulting increase in demand for pounds on the FOREX.
		Since the reason for the BoP crisis was continual pressure for the currency to depreciate, moving to a floating system would undoubtedly result in a rapidly depreciating currency.
	internationalecon.com /v1.0/Finance/ch90/F90-5.html (1849 words)

	Currency crisis - Wikipedia, the free encyclopedia
		A currency crisis occurs when the value of a currency changes quickly, undermining its ability to serve as a medium of exchange or a store of value.
		It is a type of financial crisis and is often associated with a real economic crisis.
		Currency crises can be especially destructive to small open economies or bigger, but not sufficiently stable ones.
	en.wikipedia.org /wiki/Currency_crisis (184 words)

	[No title]
		Moreover, while this crisis did not play exactly in the way posited by standard currency crisis models, nonetheless those models were helpful in providing at least a first-pass framework for both understanding and policy formation - and those who knew those models were better forecasters than those who did not.
		What all of this suggests is that the Asian crisis is best seen not as a problem brought on by fiscal deficits, as in "first-generation" models, nor as one brought on by macroeconomic temptation, as in "second-generation" models, but as one brought on by financial excess and then financial collapse.
		Indeed, to a first approximation currencies and exchange rates may have had little to do with it: the Asian story is really about a bubble in and subsequent collapse of asset values in general, with the currency crises more a symptom than a cause of this underlying real (in both senses of the word) malady.
	web.mit.edu /krugman/www/DISINTER.html (5234 words)

	Argentina's Pseudo Currency Crisis - Forbes.com (Site not responding. Last check: 2007-10-13)
		A currency board system requires that domestic notes and coins, as well as deposit liabilities at the monetary authority, be fully covered by foreign reserves denominated in a foreign anchor currency, and that the domestic currency must trade, without restrictions, at an absolutely fixed exchange rate with the anchor currency.
		After all, a currency board is nothing more than an exchange house that stands ready to exchange a foreign anchor currency for a domestic currency at a fixed rate of exchange.
		Consequently, the supply of the domestic currency is totally elastic at the fixed exchange rate (a horizontal line on a supply-demand diagram).
	www.forbes.com /2001/08/20/0731hanke_2.html (1268 words)

	The Risk of a Currency Crisis in EMU
		But that would be a bank run or a debt crisis, not a currency crisis, and need have no effect on the euro.
		And the breakup of EMU would not be a currency crisis, but rather a political crisis so catastrophic for the European Union that its monetary consequences would be secondary.
		And this would be a political crisis, not a currency crisis.
	www.cepr.org /PRESS/LM1406PR.htm (1132 words)

	How A US Currency Crisis Could Unfold
		But currency crises also come and have come to the US even, and in Dec 2004 we were flirting with pre stage events that could have boiled into a dollar crisis, when the USD was dropping fast late 2004.
		So whether its hyperinflation with a resultant mad rush to buy anything real, or a currency crisis where there is a mad rush to buy any currency other than the USD, people with large amounts of cash are asking for big trouble.
		It is possible a USD crisis could ensue, not as a result of some definite decision of foreigners to pull out of the USD, but could ensue as an accident, possibly of derivatives.....
	www.rense.com /general67/curr.htm (1611 words)

	SSRN-Currency Crisis, Monetary Policy, and Corporate Balance Sheet Vulnerabilities by Sylvester Eijffinger, Benedikt ...
		To analyze this question, we present a model that defines currency crisis as situations in which the costs of maintaining a fixed exchange rate exceed the costs of abandonment.
		The results show that a higher exposure to interest rate changes increases the probability of crisis through an increased need for output loss compensation and an increased efficacy of monetary policy in stimulating output.
		As a result, its effects on the probability of crisis is ambiguous.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=852684 (395 words)

	Asian Currency Crisis, Part Two?
		The rupiah is down 25% since January, making it the world's worst-performing currency, as it plumbs levels unseen since the crisis of 1997-98.
		Because the Philippines escaped the worst of the crisis in 1997, its exports were expected to recover quickly.
		While weak currencies help exporters, they are scaring away equity investors, who don't want to see stock holdings eroded by currency tumbles.
	www.businessweek.com /2000/00_31/b3692083.htm (634 words)

	Safe Haven \| Currency Crisis Ignites Gold (Site not responding. Last check: 2007-10-13)
		Nearly every major central bank is in a race to debase their currency against the dollar, yet they simply cannot do it fast enough as the dollar continues to fall.
		In a world where foreign currency gains will be limited by their governments' misguided motives and where TIPs are restrained by phony CPI numbers, the world's oldest currency will once again become its strongest.
		The fact remains that unlike fiat currencies; gold cannot simply be created out of thin air.
	www.safehaven.com /article-2169.htm (1341 words)

	Asian Economic Crisis: Points of View
		Address to the Board of Governors Speech by President Mitsuo Sato Asian Development Bank, 29 April 1998, Geneva, Switzerland Discusses the Asian currency turmoil, the ADB's response to the Asian currency crisis, and the ADB's role in the changing environment.
		Currency Turmoil in Asia: the strategic impact Remarks BY His Excellency Dr. Surin Pitsuwan Minister of Foreign Affairs of Thailand At the Asia Pacific Roundtable Kuala Lumpur, Malaysia 1 June 1998.
		RR-2217: February 11, 1998, "Emerging From Crisis: the Beginnings of a New Asia" Remarks by Lawrence H. Summers, Deputy Secretary of the Treasury, Economic Strategy Institute.
	russia.shaps.hawaii.edu /economic/asian-crisis.html (2916 words)

	Financial Crises in Emerging Markets
		THE NBER PROJECT ON EXCHANGE RATE CRISES IN This NBER project is examining the causes of currency crises in emerging market countries as well as the policies that can reduce the risk of future crises and the adverse effects when such crises occur.
		Professors Sebastian Edwards and Michael Dooley, both members of the NBER Program on International Finance and Macroeconomics, are codirectors with Professor Frankel of two of the conferences, producing respectively the two volumes: Preventing Currency Crises in Emerging Markets, and Managing Currency Crises in Emerging Markets.
		In addition, the NBER organized a nontechnical conference that brought together individuals who played key roles in dealing with the economic crisis.
	www.nber.org /crisis (1341 words)

	The Asian Crisis Home Page
		If interested in receiving a hard copy of the paper, please send me an e-mail.
		reference lists of papers and books on Asian growth and the crisis; a survey on endogenous growth and international trade; a survey on "Currency Crisis and Capital Control"; some statistics;
		If you have any comments, or if you know of any information related to the Asian crisis, I would appreciate your letting me know.
	faculty.washington.edu /karyiu/Asia (366 words)

	The Korean Currency Crisis
		Does the end of crisis mean the end of reform?
		Financial Contagion in the East Asian Crisis With Special Reference to the Republic of Korea
		The Korean Financial Crisis of 1997- A Strategy of Financial Sector Reform
	www.nber.org /crisis/korea_agenda.html (369 words)

	The Currency Crisis: Selected Readings
		Currency Crisis Fails to Deter Global Players With Long View",
		"Currency Crisis to Reach Peak in 1st Quarter"
		Search ABI/Inform for a wider list of articles about the currency crisis.
	units.sla.org /division/dbf/conf/hbs/pgl/crisis.htm (1609 words)

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