The Mexican Peso Crisis: Overview and Analysis of Credibility Factors
This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1996
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Schriftenreihe: | IMF Working Papers
Working Paper No. 96/6 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation results indicate that investors appear to have seriously underestimated the risk of devaluation, despite early warning signals. The collapse of confidence that followed the December 20 devaluation may have been the result of a shift in the perceived commitment of the authorities to exchange rate stability |
Beschreibung: | 1 Online-Ressource (36 p) |
ISBN: | 1451929099 9781451929096 |
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spelling | Masson, Paul R. Verfasser aut The Mexican Peso Crisis Overview and Analysis of Credibility Factors Masson, Paul R Washington, D.C International Monetary Fund 1996 1 Online-Ressource (36 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 96/6 This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation results indicate that investors appear to have seriously underestimated the risk of devaluation, despite early warning signals. The collapse of confidence that followed the December 20 devaluation may have been the result of a shift in the perceived commitment of the authorities to exchange rate stability Online-Ausg Agénor, Pierre-Richard Sonstige oth http://elibrary.imf.org/view/IMF001/07166-9781451929096/07166-9781451929096/07166-9781451929096.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Masson, Paul R. The Mexican Peso Crisis Overview and Analysis of Credibility Factors |
title | The Mexican Peso Crisis Overview and Analysis of Credibility Factors |
title_auth | The Mexican Peso Crisis Overview and Analysis of Credibility Factors |
title_exact_search | The Mexican Peso Crisis Overview and Analysis of Credibility Factors |
title_exact_search_txtP | The Mexican Peso Crisis Overview and Analysis of Credibility Factors |
title_full | The Mexican Peso Crisis Overview and Analysis of Credibility Factors Masson, Paul R |
title_fullStr | The Mexican Peso Crisis Overview and Analysis of Credibility Factors Masson, Paul R |
title_full_unstemmed | The Mexican Peso Crisis Overview and Analysis of Credibility Factors Masson, Paul R |
title_short | The Mexican Peso Crisis |
title_sort | the mexican peso crisis overview and analysis of credibility factors |
title_sub | Overview and Analysis of Credibility Factors |
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