dc.contributor.author | MERTENS, Karel | |
dc.date.accessioned | 2007-10-03T15:22:51Z | |
dc.date.available | 2007-10-03T15:22:51Z | |
dc.date.issued | 2007 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/7103 | |
dc.description.abstract | This 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.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | European University Institute | |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2007/16 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | E2 | en |
dc.subject | E3 | en |
dc.subject | F3 | en |
dc.subject | F4 | en |
dc.subject | sudden stops | en |
dc.subject | small open economy | en |
dc.subject | expectations | en |
dc.subject | peso problem | en |
dc.title | The Role of Expectations in Sudden Stops | en |
dc.type | Working Paper | en |
dc.neeo.contributor | MERTENS|Karel|aut| | |
eui.subscribe.skip | true | |