Multiple Equilibria, Contagion, and the Emerging Market Crises /

The paper surveys the types of models producing multiple equilibria in financial markets. It argues that such models are consistent with observed phenomena, such as the greater volatility of financial asset prices than of macroeconomic fundamentals. Alternative explanations are compared with the sty...

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Detalhes bibliográficos
Autor principal: Masson, Paul
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 1999.
Colecção:IMF Working Papers; Working Paper ; No. 1999/164
Acesso em linha:Full text available on IMF
Descrição
Resumo:The paper surveys the types of models producing multiple equilibria in financial markets. It argues that such models are consistent with observed phenomena, such as the greater volatility of financial asset prices than of macroeconomic fundamentals. Alternative explanations are compared with the stylized facts concerning capital flows, portfolio shifts, and exchange rate crises. Implications for crisis prediction and prevention are then discussed.
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Descrição Física:1 online resource (25 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students