at Google ScholarTitle data
Dreher, Axel ; Herz, Bernhard ; Karb, Volker:
Is there a causal link between currency and debt crises?
In: International Journal of Finance & Economics.
Vol. 11
(2006)
Issue 4
.
- pp. 305-325.
ISSN 1076-9307
DOI: https://doi.org/10.1002/ijfe.300
Abstract in another language
Though currency and debt crises quite often occur simultaneously, the links between these two types of crises are not well understood. We review how currency and debt crises could be related due to common causes, contagion effects from one crisis to the other, and complementary budget financing aspects. In an empirical analysis based on a panel of 80 countries over the period 1975–2000, we first investigate the determinants of each crisis separately. Then we estimate links between both crises employing instrumental variables techniques. We find that, while there is a negative lagged influence of currency crises on debt crises, currency crises significantly increase the risk of contemporaneous debt crises and vice versa.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | Debt crises; currency crises; contagion |
| 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: | 02 Apr 2015 06:38 |
| Last Modified: | 02 Apr 2015 06:38 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/9779 |