Central Bank Vulnerability and the Credibility of Commitments : A Value-at-Risk Approach to Currency Crises /

A loss of solvency increases central bank vulnerability, reducing the credibility of commitments to defend a nominal regime, including an exchange rate peg. This paper develops a methodology to assess central bank solvency and exposure to risk. The measure, based on Value-at-Risk, is frequently used...

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Bibliographic Details
Main Author: Schumacher, Liliana
Other Authors: Blejer, Mario
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1998.
Series:IMF Working Papers; Working Paper ; No. 1998/065
Online Access:Full text available on IMF