The paper proposes an explanation for the 1992 currency crisis as the result of monetary policy behaviour and private agents’ speculation. Our analysis reveals how speculators’ expectations and the behaviour of the monetary policy authority were formed on the widespread beliefs about the future value of income.We showthat the real effects of monetary policy measures represent the link between the action of the central bank and speculation.
Speculation and monetary policy behaviour in the 1992 currency crisis: the Italian case
Canale, Rosaria Rita;Montagnoli, Alberto;Napolitano, Oreste
2008-01-01
Abstract
The paper proposes an explanation for the 1992 currency crisis as the result of monetary policy behaviour and private agents’ speculation. Our analysis reveals how speculators’ expectations and the behaviour of the monetary policy authority were formed on the widespread beliefs about the future value of income.We showthat the real effects of monetary policy measures represent the link between the action of the central bank and speculation.File in questo prodotto:
Non ci sono file associati a questo prodotto.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
