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.


Interest Rate Focal Point Central Bank Exchange Rate Regime Current Loss 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Fachmedien Wiesbaden 2016

Authors and Affiliations

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

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