Rebelo, Sergio T.; Eichenbaum, Martin; Burnside, A. Craig - 2005
The recent Asian currency crisis was caused by large prospective fiscal deficits associated with implicit bailout … crisis inevitable. Burnside, Eichenbaum, and Rebelo argue that the recent Asian currency crisis was caused by large … seignorage revenues to pay for the bailout of the banking system. In a world of forward-looking agents, this makes a currency …