Which of the following is not a central feature in first generation models of currency crises?
A) budget deficits
B) reduction of the money supply
C) high inflation
D) depletion of a country's foreign exchange reserves
E) capital outflows

Question

Quizplus · Accepted Answer

Reduction of the money supply is not a central feature in first generation models of currency crises. The other options (budget deficits, high inflation, depletion of foreign exchange reserves, and capital outflows) are all key features in these models.

Which of the Following Is Not a Central Feature in First