|Case: “Currency Crises” Harvard Business School case no. 9-799-088
Textbook Reading: Chapter 8 (Section 8.3; pp. 278-280) and Chapter 10 (Section 10.4; pp. 357-366)
To get a good understanding of how currency crises occur, and their implications, see Yegor Gaidar’s 1999 article on “Lessons of the Russian Crisis for Transition Economies“.
For an assessment of whether the UK looks as though it is on the verge of a currency crisis, as of October 2022, see:
- “Does the UK look on the verge of a currency crisis?” Kaleidic Economics, October 2022
The key goal for monetary authorities is credibility: [Credibility flashcard]
What constitutes an optimal currency areas? [Optimal Currency Areas flashcard]
|Learning Objectives: Understand the causes and triggers of a currency crisis. Consider indicators that predict a currency crisis.|