Essec\Faculty\Model\Contribution {#2190
  #_index: "academ_contributions"
  #_id: "8049"
  #_source: array:26 [
    "id" => "8049"
    "slug" => "financial-instability-under-floating-exchange-rate"
    "yearMonth" => "2003-03"
    "year" => "2003"
    "title" => "Financial Instability under Floating Exchange Rate"
    "description" => "BESANCENOT, D. et VRANCEANU, R. (2003). <i>Financial Instability under Floating Exchange Rate</i>. ESSEC Business School."
    "authors" => array:2 [
      0 => array:3 [
        "name" => "VRANCEANU Radu"
        "bid" => "B00000524"
        "slug" => "vranceanu-radu"
      ]
      1 => array:1 [
        "name" => "BESANCENOT D."
      ]
    ]
    "ouvrage" => ""
    "keywords" => []
    "updatedAt" => "2020-12-17 21:00:33"
    "publicationUrl" => null
    "publicationInfo" => array:3 [
      "pages" => null
      "volume" => null
      "number" => null
    ]
    "type" => array:2 [
      "fr" => "Documents de travail"
      "en" => "Working Papers"
    ]
    "support_type" => array:2 [
      "fr" => "Editeur"
      "en" => "Publisher"
    ]
    "countries" => array:2 [
      "fr" => null
      "en" => null
    ]
    "abstract" => array:2 [
      "fr" => "Fin des années 90, un grand nombre de pays en voie de développement présentaient un marché des capitaux ouvert et une dette en devises significative. Cet article s'interroge sur la compatibilité d'un régime de changes flexibles avec cette structure financière. Le modèle prend la forme d'un jeu qui oppose des générations successives d'investisseurs, amenés à décider de renouveler ou non leurs engagements. Le taux de change est soumis à des chocs aléatoires, qui rendent incertaine la solvabilité du secteur privé. Nous démontrons qu'un faible risque d'insolvabilité peut provoquer un risque d'illiquidité très important. Un équilibre à anticipations rationnelles sans défaut peut être mis en évidence seulement dans le cas peu probable où la monnaie nationale est fortement surévaluée. Il semblerait que les changes flexibles sont loin de répondre aux attentes des pays en voie de développement."
      "en" => "At the end of the nineties, many developing countries featured an open capital market and relied heavily on dollar-debt financing of their economy. This paper analyses whether, in this context, clean floating can be a sustainable policy choice. The model is cast as a game between successive generations of investors who decide whether they buy or not the debt of a representative firm. The exchange rate is subject to random shocks, which makes uncertain the private sector's solvency. We show that a small risk of insolvency would bring about a much larger risk of illiquidity. A rational expectation equilibrium without default can be put forward only in the highly improbable case when the currency is extremely overvalued. The case against flexible exchange rates may be stronger than usually thought."
    ]
    "authors_fields" => array:2 [
      "fr" => "Economie"
      "en" => "Economics"
    ]
    "indexedAt" => "2024-04-19T18:21:56.000Z"
    "docTitle" => "Financial Instability under Floating Exchange Rate"
    "docSurtitle" => "Working Papers"
    "authorNames" => "<a href="/cv/vranceanu-radu">VRANCEANU Radu</a>, BESANCENOT D."
    "docDescription" => "<span class="document-property-authors">VRANCEANU Radu, BESANCENOT D.</span><br><span class="document-property-authors_fields">Economics</span> | <span class="document-property-year">2003</span>"
    "keywordList" => ""
    "docPreview" => "<b>Financial Instability under Floating Exchange Rate</b><br><span>2003-03 | Working Papers </span>"
    "docType" => "research"
    "publicationLink" => "<a href="#" target="_blank">Financial Instability under Floating Exchange Rate</a>"
  ]
  +lang: "en"
  +"_type": "_doc"
  +"_score": 8.910406
  +"parent": null
}