Bouvatier, Vincent - Maison des Sciences Économiques, Université Paris 1 … - 2004
This article relates to the choice of the optimal monetary policy during a currency crisis. Aghion, Bacchetta and … policy during a currency crisis is reduced when the risk premium plays an important part in the determination of the interest … rate differential. Under these conditions, capital controls could be a more adequate policy to manage a currency crisis. …