Week 12 Flashcards

(5 cards)

1
Q

Currency crisis

A
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2
Q

Fundamentals based crises (Krugman, 1979)

A
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3
Q

Currency mismatch:

A

economic agents (banks, firms, households) borrow in foreign currency but their assets and incomes are in domestic currency.

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4
Q

Reasons for the currency mismatch

A
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5
Q

From financial crisis to sovereign default

A
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