The role of domestic and foreign investors in a simple model of speculative attacks /

The role of domestic and foreign investors in a simple model of speculative attacks /

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Bibliographic Details
Author / Creator:	Botman, Dennis (Dennis Petrus Johannes), author.
Imprint:	[Washington, D.C.] : International Monetary Fund, Fiscal Affairs Dept., ©2005.
Description:	1 online resource (22 pages).
Language:	English
Series:	IMF working paper ; WP/05/205 IMF working paper ; WP/05/205.
Subject:	Speculation -- Econometric models. Investments, Foreign -- Econometric models. Foreign exchange rates -- Econometric models. Foreign exchange rates -- Econometric models. Investments, Foreign -- Econometric models. Speculation -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13510748

Hidden Bibliographic Details
Other authors / contributors:	Diks, Cees, author. International Monetary Fund. Fiscal Affairs Department, issuing body.
ISBN:	1283519046 9781283519045 1462367984 9781462367986 1452722919 9781452722917 9786613831491 6613831492 1451907605 9781451907605
Notes:	Includes bibliographical references. English. Print version record.
Summary:	We introduce local and foreign investors in a simple model of speculative attacks. Local investors have less tolerance for overvaluation of the fixed exchange rate because they tend to incur lower costs when taking a short position and possess better information, and because of moral hazard created by discriminatory government guarantees. On the other hand, the prospect of higher taxation after a balance of payments crisis deters speculation by locals compared to foreign investors. Finally, the lower the degree of exchange rate pass-through, the more likely domestic investors are tp take the lead during capital flight.
Other form:	Print version: Botman, Dennis (Dennis Petrus Johannes). Role of domestic and foreign investors in a simple model of speculative attacks. [Washington, D.C.] : International Monetary Fund, Fiscal Affairs Dept., 2005

Description
Summary:	We introduce local and foreign investors in a simple model of speculative attacks. Local investors have less tolerance for overvaluation of the fixed exchange rate because they tend to incur lower costs when taking a short position and possess better information, and because of moral hazard created by discriminatory government guarantees. On the other hand, the prospect of higher taxation after a balance of payments crisis deters speculation by locals compared to foreign investors. Finally, the lower the degree of exchange rate pass-through, the more likely domestic investors are tp take the lead during capital flight.
Physical Description:	1 online resource (22 pages).
Bibliography:	Includes bibliographical references.
ISBN:	1283519046 9781283519045 1462367984 9781462367986 1452722919 9781452722917 9786613831491 6613831492 1451907605 9781451907605