Chapter

Rescue Packages and Output Losses Following Crises

Edited by Michael P. Dooley and Sujata Verma

in Managing Currency Crises in Emerging Markets

Published by University of Chicago Press

Published in print February 2003 | ISBN: 9780226155401
Published online February 2013 | e-ISBN: 9780226155425 | DOI: http://dx.doi.org/10.7208/chicago/9780226155425.003.0007
Rescue Packages and Output Losses Following Crises

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This chapter deals with rescue packages and output losses following an exchange rate crisis. It analyzes the role of International Monetary Fund (IMF) in a game theoretic context and investigates why there are large output losses post-crisis. This chapter evaluates rescue packages in the context of an explicit model of crises and argues that the insurance model is an attractive vehicle for the analysis because it provides an explanation for surges in capital inflows followed by sudden stops.

Keywords: rescue packages; output losses; exchange rate crisis; IMF; insurance model; capital inflows

Chapter.  8966 words. 

Subjects: International Economics

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