TY  - BOOK
AU  - Allegret,Jean-Pierre
AU  -  Calès,Marie-Noëlle
TI  - Speculative Attacks and the Credibility of Exchange Rate Regime
PY  - 2001///.
							
N1  - 13
N2  - Since the Asian and Brazilian exchange rate crises have occurred, the reaction of authorities has been the subject of an intense debate. Indeed, coping with a speculative attack, domestic authorities both increase interest rates and contract fiscal policy. It appears that such a combination of policy instruments is counterproductive. This paper analyses the credibility of the policy-mix used by authorities. But, opposite to traditional credibility models, fiscal policy is explicitly introduced in the loss function of the authorities. The model suggests that a restrictive fiscal policy is not necessary a credible decision to defence the exchange rate target. Classification JEL: E5; E6; F4
UR  - https://shs.cairn.info/journal-revue-economique-2001-2-page-249?lang=en
ER  -