Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money
Publication
, Journal Article
Kimbrough, KP
Published in: Journal of Macroeconomics
January 1, 1992
The effects of an anticipated speculative attack and exchange rate regime collapse brought on by an unsustainable mix of domestic credit and exchange rate policies is examined. A maximizing model with money demand motivated by a transactions technology which implies that increased money holdings reduce transactions costs associated with consumption good purchases is used. It is demonstrated that the effects of an impending speculative attack depend crucially on two margins through which the forward-looking behavior of rational consumers manifests itself the intertemporal elasticity of substitution in consumption and the interest elasticity of the demand for money. © 1992.
Duke Scholars
Published In
Journal of Macroeconomics
DOI
ISSN
0164-0704
Publication Date
January 1, 1992
Volume
14
Issue
4
Start / End Page
689 / 710
Related Subject Headings
- Economics
- 3803 Economic theory
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Kimbrough, K. P. (1992). Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money. Journal of Macroeconomics, 14(4), 689–710. https://doi.org/10.1016/0164-0704(92)90006-T
Kimbrough, K. P. “Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money.” Journal of Macroeconomics 14, no. 4 (January 1, 1992): 689–710. https://doi.org/10.1016/0164-0704(92)90006-T.
Kimbrough KP. Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money. Journal of Macroeconomics. 1992 Jan 1;14(4):689–710.
Kimbrough, K. P. “Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money.” Journal of Macroeconomics, vol. 14, no. 4, Jan. 1992, pp. 689–710. Scopus, doi:10.1016/0164-0704(92)90006-T.
Kimbrough KP. Speculative attacks: The roles of intertemporal substitution and the interest elasticity of the demand for money. Journal of Macroeconomics. 1992 Jan 1;14(4):689–710.
Published In
Journal of Macroeconomics
DOI
ISSN
0164-0704
Publication Date
January 1, 1992
Volume
14
Issue
4
Start / End Page
689 / 710
Related Subject Headings
- Economics
- 3803 Economic theory
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics
- 1401 Economic Theory