Hidden Bibliographic Details
| Other authors / contributors: | Diks, Cees, author.
International Monetary Fund. Fiscal Affairs Department, issuing body.
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| ISBN: | 1283519046
9781283519045
1462367984
9781462367986
1452722919
9781452722917
9786613831491
6613831492
1451907605
9781451907605
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| Notes: | Includes bibliographical references.
English.
Print version record.
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| 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.
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| 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
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