全球智库信息集成服务系统(G2TT): DP2529 Currency Crises and Monetary Policy in an Economy with Credit Constraints

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来源类型	Discussion paper
规范类型	论文
来源ID	DP2529
	DP2529 Currency Crises and Monetary Policy in an Economy with Credit Constraints
	Philippe Bacchetta; Philippe Aghion; Abhijit Banerjee
发表日期	2000-08-29
出版年	2000
语种	英语
摘要	This paper presents a simple model of currency crises, which is driven by the interplay between the credit constraints of private domestic firms and the existence of nominal price rigidities. The possibility of multiple equilibria, including a ?currency crisis? equilibrium with low output and a depreciated domestic currency, results from the following mechanism: if nominal prices are ?sticky?, a currency depreciation leads to an increase in the foreign currency debt repayment obligations of firms, and thus to a fall in their profits; this reduces firms' borrowing capacity and therefore investment and output in a credit-constrained economy, which in turn reduces the demand for the domestic currency and leads to a depreciation. We examine the impact of various shocks, including productivity, fiscal, or expectational shocks. We then analyse the optimal monetary policy to prevent or solve currency crises. We also argue that currency crises can occur both under fixed and flexible exchange rate regimes as the primary source of crises is the deteriorating balance sheet of private firms.
主题	International Macroeconomics
关键词	Currency crisis Foreign currency debt Credit constraint
URL	https://cepr.org/publications/dp2529
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/531604
推荐引用方式 GB/T 7714	Philippe Bacchetta,Philippe Aghion,Abhijit Banerjee. DP2529 Currency Crises and Monetary Policy in an Economy with Credit Constraints. 2000.