Currency Crises
From Dickinson College Wiki
This Page:
What is a currency crisis?
- "currency crises" are usually attacks on the domestic currency that end with a large fall in its value.
- As opposed to: "banking crises" refer to bank runs or other events that lead to closure, merger, takeover, or large-scale assistance by the government to financial institutions.
- One or both can happen at once.
- NOTE TO ALL: At the bottom, should we add something like a quick overview of what we're going to cover before we split into giving the example country scenarios? Or is the Nav Bar good enough since it shows links to all the pages? I wrote a couple bullets, but I'm not sure what should go there.
LINDSEY'S CURRENCY CRISIS.DOC:
Currency crisis:
Key terms:
-appreciation
-depreciation
-currency speculation
How people estimate currency:
-differences in inflation rates
-deviations from purchasing powers
-large account imbalances
-stress on exchange rate
Floating vs. Fixed exchange rate:
(with a fixed exchange rate economy is not flexible and will collapse easily)
Speculatatice attack (aka currency crisis)
2 possible reasons for currency crisis:
a. loss of reserves
b. loss of public patience
SOME economists argue that currency crisis are "self-fufilling" (ie, people cause them due to their withdrawl of funds)
Other Pages:
- What caused the currency crisis? (Ex: Thailand's Currency Crisis and Argentina's Currency Crisis)
- What are the effects? (Ex: Thailand's Currency Crisis: Effects and Argentina's Currency Crisis: Effects)
- How is a currency crisis dealt with? (Ex: Thailand's Currency Crisis: Solutions and Argentina's Currency Crisis: Solutions)
- What are the global effects? (i.e. ripple effect, cause-and-effect chains)
Lindsey, Rachel, Marie, Jason, Sayo
