Government finance in the wake of currency crises

dc.contributor.author

Burnside, C

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Eichenbaum, M

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Rebelo, S

dc.date.accessioned

2010-03-09T15:43:35Z

dc.date.issued

2006-04-01

dc.description.abstract

We address three questions: (i) Can classical models be reconciled with the fact that many crises are marked by high rates of depreciation and small increases in seignorage revenue? (ii) What are the implications of different financing methods for post-crisis rates of inflation and depreciation? (iii) How do governments pay for the fiscal costs associated with currency crises? To study these questions we use a general equilibrium model in which prospective government deficits trigger a currency crisis. We then use our model in conjunction with fiscal data to interpret government financing in the wake of three recent currency crises: Korea (1997), Mexico (1994) and Turkey (2001). © 2006 Elsevier B.V. All rights reserved.

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application/pdf

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0304-3932

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https://hdl.handle.net/10161/2078

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en_US

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Elsevier BV

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Journal of Monetary Economics

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10.1016/j.jmoneco.2005.03.012

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Government finance in the wake of currency crises

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Journal article

pubs.begin-page

401

pubs.end-page

440

pubs.issue

3

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Duke

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Economics

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Trinity College of Arts & Sciences

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Published

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53

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