at Google ScholarTitle data
Herz, Bernhard ; Bauer, Christian ; Karb, Volker:
Debt and currency crises.
In:
Kolb, Robert W. (Hrsg.): Financial contagion. -
Hoboken, N.J.
: Wiley
,
2011
. - pp. 78-86
ISBN 978-0-470-92238-5
Abstract in another language
Debt and currency crises are closely interlinked through the government's intertemporal budget constraint. The default tax and the inflation/devaluation tax can be considered as alternative means of financing. Our empirical analysis finds that high-debt countries choose default rather than inflation/devaluation for financing, while a high money stock reduces the probability of debt crises. Further, we find strong evidence that debt and currency crises share common fundamental causes. Finally, there is a Granger causality running from debt crises to currency crises, but only weakly in the other direction.
Further data
| Item Type: | Article in a book |
|---|---|
| Refereed: | Yes |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 01 Apr 2015 06:15 |
| Last Modified: | 16 Sep 2016 10:32 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/9527 |