Crisis Amidst Growth
Crisis 1997 was the last of the three financial shocks of the 1990s. Three characteristics contributed to the shock value of this episode: its abrupt onset, its virulence against apparently healthy economies, and its widespread reach. It is useful to identify these characteristics both in order to diagnose the problem and to prescribe a remedy. One needs a thorough understanding of the menace in order to prevent its recurrence; no stone must be left unturned. Our attention here focuses on the three aspects mentioned above.
KeywordsReal Exchange Rate Subjective Probability Central European Bank Multiple Equilibrium Real Estate Market
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