Self-Fulfilling Risk Predictions : An Application to Speculative Attacks /

The paper shows that changing market beliefs about currency risk can generate a self-fulfilling speculative attack on a fixed exchange rate. The attack does not require a later change in policies to make it profitable. This is illustrated by introducing an endogenous risk premium into a 'first-...

Fuld beskrivelse

Bibliografiske detaljer
Hovedforfatter: Flood, Robert
Andre forfattere: Marion, Nancy
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1998.
Serier:IMF Working Papers; Working Paper ; No. 1998/124
Online adgang:Full text available on IMF