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dc.contributor.authorMERTENS, Karel
dc.date.accessioned2007-10-03T15:22:51Z
dc.date.available2007-10-03T15:22:51Z
dc.date.issued2007
dc.identifier.issn1725-6704
dc.identifier.urihttps://hdl.handle.net/1814/7103
dc.description.abstractThis paper presents a flexible-price small open economy model with a “peso problem” in productivity states. Agents rationally adjust their beliefs about future productivity growth after the arrival of news. A downward revision of expectations triggers Sudden Stop, together with large declines in GDP, employment, consumption and investment. There need not be any actual change in productivity growth to generate large fluctuations. Quantitatively, the model goes a long way in matching the 1998 Korean Crisis and subsequent swift recovery.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2007/16en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectE2en
dc.subjectE3en
dc.subjectF3en
dc.subjectF4en
dc.subjectsudden stopsen
dc.subjectsmall open economyen
dc.subjectexpectationsen
dc.subjectpeso problemen
dc.titleThe Role of Expectations in Sudden Stopsen
dc.typeWorking Paperen
dc.neeo.contributorMERTENS|Karel|aut|
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