The Macroeconomic Theory of Exchange Rate Crises

An overview of the causes and consequences of speculative attacks on domestic currency and international financial turmoil. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs.

Preface ; Introduction ; PART I: THE MONETARY MODEL UNDER FLEXIBLE EXCHANGE RATES ; 1. The Basic Monetary Model of the Exchange Rate ; PART II: FIXED EXCHANGE-RATE REGIMES AND CURRENCY CRISES ; 2. Crises and Policy Imbalances ; 3. Crises and Self-Fulfilling Expectations ; 4. Dynamics of Crises ; 5. Epilogue ; MATHEMATICAL APPENDIX ; Introduction ; A.1 Basic Properties of Ordinary Differential Equations ; A.2 Basic Properties of Ordinary Difference Equations ; A.3 Nonlinear Dynamics, Bifurcation and Chaos ; A.4 Dynamic Optimization ; A.5 Stochastic Equations