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The Fall of Bretton Woods: Which Geography Matters?

Author

Listed:
  • Leila Ali

    (University of Poitiers/CRIEF-MOFIB)

  • Marie Lebreton

    (University of Bordeaux 4/GRETHA)

Abstract

This paper analyses the spatial diffusion of the speculative attacks during the fall of the Bretton Woods System. First, we study the spatial heterogeneity of the relationship between speculative pressures and their determinants via a locally linear framework. Here, relationships were assumed to reflect mainly geographical space. However, mapping the countries in crisis also showed that the spatial diffusion of attacks was not linear. Therefore, we used a neuro-coefficient smooth transition auto-regressive model to investigate more complex interactions between geographical space and crises. Our results suggest that combining geographical and socio-economic spaces is useful for predicting the location of future victims.

Suggested Citation

  • Leila Ali & Marie Lebreton, 2013. "The Fall of Bretton Woods: Which Geography Matters?," Economics Bulletin, AccessEcon, vol. 33(2), pages 1396-1419.
    • Handle: RePEc:ebl:ecbull:eb-13-00173
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Spatial Econometrics; Neural Network Models; Speculative Attacks; Contagion.;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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