Swada, Yasuyuki; Yotopoulos, Pan A. - Stanford Institute for Economic Policy Research … - 2005
cumulative circular causation with currency substitution leading to devaluation of soft currencies which in turn induces further … currency substitution. At the theoretical level, the “fundamentals model” of currency crisis is formally extended by … incorporating currency substitution in an inter-temporally optimizing framework. Next the model is implemented empirically by …