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Exchange Rate Crises: Experiences of Latin America, East Asia and India

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  • Manmohan Agarwal
  • Vandana T. R.

Abstract

A number of developing countries mainly in Latin America and East Asia suffered exchange rate crises in the 1990s. India also suffered a crisis in 1991 and another earlier in 1966. We examine the run up to the crises in terms of a few macroindicators suggested by various crisis models. We then examine the aftermath of the crisis, which is largely absent in literature. We seek to explain the pre-crisis and post-crisis situations in the light of various crisis models. We find that crises in East Asia cannot be explained in terms of Krugman’s first-generation model (FGM), but those in the other countries can be explained by Krugman’s model, adding to the debates among crises models. JEL Classifications : E420, F310, F320, F410

Suggested Citation

  • Manmohan Agarwal & Vandana T. R., 2021. "Exchange Rate Crises: Experiences of Latin America, East Asia and India," South Asian Journal of Macroeconomics and Public Finance, , vol. 10(2), pages 158-178, December.
    • Handle: RePEc:sae:smppub:v:10:y:2021:i:2:p:158-178
    DOI: 10.1177/2277978720987341
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    References listed on IDEAS

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