Playing with Fire: Pre-Electoral Fiscal Manipulation and the Risk of a Speculative Attack

2014 ◽  
Vol 58 (4) ◽  
pp. 828-838 ◽  
Author(s):  
Benjamin Nyblade ◽  
Angela O'Mahony
Keyword(s):  
Speculative Attack ◽  
Fiscal Manipulation

Walter Bagehot’s Lombard Street: An Interpretation

2019 ◽  
Vol 51 (4) ◽  
pp. 572-580
Author(s):  
Laurence Alan Krause
Keyword(s):  
Central Bank ◽  
Gold Standard ◽  
Foreign Capital ◽  
Theoretical Framework ◽  
Credit System ◽  
Policy Regime ◽  
Policy Rules ◽  
Speculative Attack ◽  
The Right ◽  
Jel Classifications

Walter Bagehot’s contribution to macroeconomics in Lombard Street is misunderstood and underappreciated. To remedy this, I reinterpret his work, including his famous policy “rules,” by piecing together his larger theoretical framework. That framework incorporates: (1) a “Lombard Street” economy, consisting of a permissive lending system, capitalists in need of credit, and a financial center which attracts large inflows of foreign capital; (2) a rigid policy regime built on a gold standard; and (3) a central bank with a dual objective of keeping the nation’s currency convertible into gold and backstopping a crisis-prone economy. Bagehot argues that an economy with this structure is vulnerable to two distinct crises. The first is a speculative attack on the gold standard by foreigners, as they seek to convert their money into gold. And the second is a run on the credit system by nervous participants. Guided by the “right principles,” Bagehot insists that an active central bank can both preserve the gold standard and prevent recurrent financial panics. JEL Classifications: B31, E58, N23

The persistence of moderate inflation in the czech republic and the czk crisis of may 1997

1999 ◽  
Vol 8 (4) ◽  
Author(s):  
Josef C. Brada ◽  
Ali M. Kutan
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Exchange Rate Policy ◽  
Nominal Exchange Rate ◽  
Fiscal Policies ◽  
Foreign Reserves ◽  
Macroeconomic Policies ◽  
The Czech Republic ◽  
Speculative Attack ◽  
Rate Policy

The paper deals with the exchange rate policy being implemented in combination with the mix of monetary and fiscal measures prior to the speculative attack on the CZK in 1997. The fixed nominal exchange rate may have been retained for too long and the monetary and fiscal policies were inappropriate. It explains the relation between Czech inflation, exchange rate and macroeconomic policies until the crisis of May 1997. <P>While the Czech Republic weathered its currency crisis much better than did most other emerging economies, with the worst damage being a USD 2 billion loss of foreign reserves, the crisis failed to resolve all of the fundamental problems. It gives also some explanations for the persistence of inflation at a level around 10 % until mid-1998.

scholarly journals The Mirage of Fixed Exchange Rates

1995 ◽  
Vol 9 (4) ◽  
pp. 73-96 ◽  
Author(s):  
Maurice Obstfeld ◽  
Kenneth Rogoff
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Capital Markets ◽  
Global Capital ◽  
Speculative Attack ◽  
Fixed Exchange Rates ◽  
Monetary Authorities ◽  
Very High ◽  
Dynamic Interplay

This paper discusses the profound difficulties of maintaining fixed exchange rates in a world of expanding global capital markets. Contrary to popular wisdom, industrialized-country monetary authorities easily have the resources to defend exchange parities against virtually any private speculative attack. But if their commitment to use those resources lacks credibility with markets, the costs to the broader economy of defending an exchange-rate peg can be very high. The dynamic interplay between credibility and commitment is illustrated by the 1992 Swedish and British crises and the 1994-95 Mexican collapse. The authors also discuss the small number of successful fixers.

scholarly journals THE LINK BETWEEN ACCOUNTING AND FISCAL EVASION

2008 ◽  
pp. 44
Author(s):  
Silvia Lăzărescu (Marinescu)
Keyword(s):  
Tax Evasion ◽  
Swot Analysis ◽  
Underground Economy ◽  
Competitive Environment ◽  
Fair Play ◽  
The Real ◽  
Creative Accounting ◽  
Tax Systems ◽  
Fiscal Manipulation

In the literature, controversies have arisen concerning the link between accounting and fiscal evasion, which are the object of debates among specialists from different specialized organizations from many countries. Under the term of “creative accounting”, the American and European tax systems have made up an ensemble of accounting mechanisms and also of fiscal manipulation which increased the interest and involvement of the states in the mitigation of such fraud risks and fiscal subterfuges whose percentage in the countries’ GDP varies from 8 to 80%. Starting from the SWOT analysis of tax evasion in the real and underground economy, the specialists of the liberal trades are called to join the fight against fiscal fraud and share their professionalism in creating a real competitive environment characterized by fair play.

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