A Simple Model of monetary policy and currency crisis(6)

A Simple Model of monetary policy and currency crisis

t|'jg|/fxuuhqwrxwsxwehfrphvdolqhduixqfwlrqrifxuuhqwhqwuhsuhqhxuv*zhdowk=

t|'jE n>| `|Zhdovrdvvxphwkdwwkhsursruwlrqdolw|idfwru>|lvdqhjdwlyhixqfwlrqriwkhqrplqdolqwhuhvwudwh=>|'>E |! 1""

Wkhvhfrqgedvlfdvvxpswlrqlvwkdw/iruuhdvrqvzklfkuh hfwwkhohyhori qdqfldoghyhorsphqwlqwkhgrphvwlffrxqwu|/grphvwlffrqvxphuvduhxqzloolqjwrohqgpruhwkdqduhdodprxqw(Slqgrphvwlffxuuhqf|wrgr0phvwlf upvdwhdfkshulrg"#1Wkhuhvwriwkhixqglqj/(| (S/frphviurpiruhljqhuvdqglvlqiruhljqfxuuhqf|1"$

Djjuhjdwhqrplqdosur wvqhwrighewuhsd|phqwvlqshulrg|/duhvlpso|jlyhqe|=

|' |t| E n |! |! (S E n 9

.|

|! E(| (S |!

Zkhqsur wvduhsrvlwlyh/hqwuhsuhqhxuvxvhdsursruwlrqE k riwkhvhsur wvdvwkhlurzquhwdlqhghduqlqjvirusurgxfwlrqlqwkhiroorzlqjshulrg+dsursruwlrqkrisur wvlvglvwulexwhgrufrqvxphg,1Wrwdoqhwzhdowkdydlodeohiruqh{wshulrgsurgxfwlrqlvwkxvhlwkhuhtxdowr}hur/zkhqqhw

Wklvfdqehmxvwl hg/h1jxvlqjvlplodufrqvlghudwlrqvdvlqDjklrq/Edffkhwwd/dqgEdqhumhh+4<<<,1Qdpho|/vxssrvhwkdwhqwuhsuhqhxuvfdqhlwkhusurgxfhwudqvsduhqwo|dqgixoo|uhsd|wkhluordqrulqvwhdgfdqklghwkhlusurgxfwlrqlqrughuwrghidxowrqwkhlughewuhsd|phqwreoljdwlrqv1Wkhuhlvdfrvwwrklglqjsursruwlrqdowrwkhixqgvlqyhvwhg=fSM "NM1\hw/zkhqhyhuwkhhqwuhsuhqhxufkrrvhvwrghidxow/wkhohqghufdqvwloofroohfwklvgxhuhsd|phqwzlwksuredelolw|s1Wkxvwkheruurzhuzlooghflghqrwwrghidxowlidqgrqo|li=SM\M +4.lM ",SM "GM SM\M fSM "NM s+4.lM ",SM "GM1WklvlvhtxlydohqwwrGM +lM ",ZMzlwk @f@^+4 s,+4.lM ", f`>zklfklvlqghhgghfuhdvlqjlqlM "1Wkhiruhljqlqwhuhvwudwhgrhvqrwd hfw zkhqerwkSSSdqgwkhlqwhuhvwsdulw|krog1"#

ZkhwkhuGBlvodujhruvpdoo/wkdwlvwkhh{whqwwrzklfkgrphvwlfohqghuvduhzloolqjwrohqg+vkruw0whup,rqwkhgrphvwlfpdunhw/lqwxuquh hfwvvxfkwklqjvdvwkhlqirupdwlrqfrvwvriohqglqjwrgrphvwlf upv/wkh wklfnqhvv dqg frpsohwhqhvv riwkhgrphvwlffuhglwpdunhwdqgwkhgrphvwlfohqghuv*dwwlwxghwrzdugulvn1Dsuhflvhdqdo|vlvriwkhghwhuplqdqwvriGBdqgrikrzGBpd|ydu|iruh{dpsohzlwkwkhvl}hrishulrg4*vvkrfn/jrhveh|rqgwkhvfrshriwklvqrwh1"$

Wrohqglqgrphvwlffxuuhqf|/iruhljqhuvzrxogdvndsrvlwlyhsuhplxpwrfrpshqvdwhiruwudqvdfwlrqvfrvwv1Wkxv/wkh|zrxoguhtxluhdqlqwhuhvwudwhkljkhuwkdqlM1WkxvligrphvwlfhqwuhsuhqhxuveruurzpruhwkdqGB>wkh|eruurzwkhgl huhqfhiurpiruhljqhuvlqiruhljqfxuuhqf|1

9