01712cas a2200241 a 4500 AALejournalIMF002530 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846140 1018-5941 BD-DhAAL BD-DhAAL Savastano, Miguel. Collapse of a Crawling Peg Regime in the Presence of a Government Budget Constraint / Miguel Savastano. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This study extends the research on balance-of-payments crises by investigating the dynamics of the collapse of a crawling exchange rate in the presence of an explicit link between the fiscal deficit and domestic credit. It shows that such an exchange rate regime is characterized by two potential steady-state equilibria. This introduces an ex-ante indeterminacy regarding the timing and magnitude of the speculative attack on international reserves in the event of a sustained inconsistency between the country's fiscal and exchange rate policies. The paper discusses the conditions that would define the actual timing of the regime's breakdown. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1991/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/042/001.1991.issue-042-en.xml IMF e-Library