Government finance in the wake of currency crises

• 成果类型: Article
• 署名作者: Burnside, Craig; Eichenbaum, Martin; Rebelo, Sergio
• 署名单位: National Bureau of Economic Research; Northwestern University; Northwestern University; Center for Economic & Policy Research (CEPR); Duke University; Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.03.012
• 发表日期: 2006
• 页码: 401-440
• 关键词: currency crisis; Banking crisis; Speculative attacks; seignorage; fiscal reform; Bailouts

摘要

We address three questions: (i) Can classical models be reconciled with the fact that many crises are marked by high rates of depreciation and small increases in seignorage revenue? (ii) What are the implications of different financing methods for post-crisis rates of inflation and depreciation? (iii) How do governments pay for the fiscal costs associated with currency crises? To study these questions we use a general equilibrium model in which prospective government deficits trigger a currency crisis. We then use our model in conjunction with fiscal data to interpret government financing in the wake of three recent Currency crises: Korea (1997), Mexico (1994) and Turkey (2001). (c) 2006 Elsevier B.V. All rights reserved.