The Changing Nature of Currency Crises Since the 1970s

40 Pages Posted: 15 Feb 2004

See all articles by Sweta C. Saxena

Sweta C. Saxena

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: January 2004

Abstract

Crises that have been observed in recent years are not a new phenomenon, but the main features of the crises in Latin America in the 1970s and early 1980s are quite different from the crisis in Europe in 1992. Theoretical literature has evolved over time to account for the changing nature of these crises. While many theoretical and empirical papers have been written about various episodes of these crises, the change in their mechanism over time has not been demonstrated well. This paper fills the gap in the literature by graphically depicting the main features of these crises. Such a visual analysis should allow the reader to better understand and follow the changes in the mechanisms over time.

Keywords: Currency crises, banking crises, first generation models, second generation models, twin crises, herding, contagion, moral hazard

JEL Classification: F31, F32, F34, F41

Suggested Citation

Saxena, Sweta Chaman, The Changing Nature of Currency Crises Since the 1970s (January 2004). Available at SSRN: https://ssrn.com/abstract=500625 or http://dx.doi.org/10.2139/ssrn.500625

Sweta Chaman Saxena (Contact Author)

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

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