Record number :
846133
Title of article :
Risk and wealth in a model of self-fulfilling currency attacks
Author/Authors :
Bernardo Guimaraes، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2007
Pages :
26
From page :
2205
To page :
2230
Abstract :
Market participants’ risk attitudes, wealth and portfolio composition influence their positions in a pegged foreign currency and, therefore, may have important effects on the sustainability of currency pegs. This paper analyzes such effects in a global game model of currency crises with continuous action choices, generating a rich set of theoretical comparative static predictions related to often discussed but rarely modelled accounts of currency attacks. The model can be solved in closed form and the methods could be used to study other economic issues in which coordination and risk aversion play important roles. r 2007 Elsevier B.V. All rights reserved.
Keywords :
Portfolio , Risk aversion , Wealth , Global games , Currency crises
Journal title :
Journal of Monetary Economics
Serial Year :
2007
Link To Document :
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