Introduction

Chapter

Abstract

Previous literature modelling financial crises and speculative attacks highlighted particularly the aspects of speculators attacking a currency. However, it did not incorporate the main role of the central bank adequately. In fact, setting the interest rate influences the fundamentals and the costs of speculators. Thus, the behavior of the central bank is neither a passive reaction due to speculative pressure nor sole signalling—it changes the state of the economy.

Keywords

Defend 

Copyright information

© Springer Fachmedien Wiesbaden 2016

Authors and Affiliations

  1. 1.Gutmark, Radtke & Company AGFrankfurt am MainGermany

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