Abstract
In contrast to previous sections where a unique equilibrium has been derived in a currency crisis model with noisy private information, the model to be used in the following section includes a more complex information structure. Consequently, the influence of the two types of information on the event of a currency crisis turns out to be very complex as well. However, the derivation of the unique equilibrium at first sight seems to be surprisingly clear and simple. It is nonetheless quite interesting to go into more detail and analyze the influence of higher order uncertainty as well as of information in the limit, i.e. with infinitely high precision, to get a deeper understanding for the interaction of both types of information.
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© 2003 Springer-Verlag Berlin Heidelberg
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Metz, C.E. (2003). The Currency Crisis Model with Private and Public Information. In: Information Dissemination in Currency Crises. Lecture Notes in Economics and Mathematical Systems, vol 527. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55471-1_9
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DOI: https://doi.org/10.1007/978-3-642-55471-1_9
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-00656-5
Online ISBN: 978-3-642-55471-1
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