IMF Economic Review

, Volume 62, Issue 4, pp 470–493 | Cite as

Currency Regimes, Capital Flows, and Crises

  • Paul Krugman


Ever since Greece experienced its debt crisis, fiscal discussion has been “Hellenized” — that is, there are constant warnings that other countries, including the United States, are on the verge of a similar crisis. But can countries that borrow in their own currency experience Greek-type crises? I argue, based both on evidence and on simple modeling, that the answer is no.

JEL Classifications

E50 F30 


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© International Monetary Fund 2014

Authors and Affiliations

  • Paul Krugman

There are no affiliations available

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