BOP Crises and External Shocks
BOP Crises and External ShocksThis is a theoretical study of BOP crises in emerging markets in East Asia and Latin America in the l990s. These BOP crises tend to be preceded by the current account deterioration, the real exchange rate appreciation, and inflationary pressures. The paper develops a model of BOP crises preceded by these macroeconomic phenomena. The model shows that an
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