currency crises, multiple equilibria, Markov-switching

Publication date: 13 May 2003 | Publication type: NIESR Discussion Paper | External authors: Nicola Spagnolo | JEL classification: C22, D84, F31 | NIESR discussion paper number: 207
In this paper we examine the nature of currency crises. We ascertain whether the currency crises of the European Monetary System (EMS) were based either on bad fundamentals, or on self-fulfilling market expectations driven by external uncertainty, or a combination of both. In particular, we extent...