NBER Project on Currency Crises

Some of the questions we seek to answer are:

  • How does a country's exchange rate regime affect the risk of a currency crisis and the consequences if one occurs?

  • What are the consequences of capital account convertibility?

  • What policies and conditions influence which countries experience currency crises?

  • How does financial regulation affect the vulnerability of an economy to various types of financial crises?

  • What is the effect of different policies with respect to foreign exchange reserves?

  • How do corporate capital structures affect the vulnerability of countries to currency crises?

  • How would the availability of a "lender of last resort" affect the crisis?

  • Have the macroeconomic programs required by the IMF been too contractionary?

  • How have the IMF structural adjustment policies affected the resolution of the currency crises?

  • How can domestic financial institutions and corporate debt structures be rehabilitated after a crisis?

  • How can a country mitigate the adverse effects of a currency crisis on the low income population?

  • Can industrial countries reduce the risk of exchange rate crises by modulating fluctuations in their exchange rates?

  • Can the lending policies of the financial institutions in industrial countries be modified to reduce the risk to emerging market countries?

  • Does financial weakness of lender institutions exacerbate the problems of debtor countries?