2nd Generation Model Of Currency Crisis Occurring Earlier

Question

In the 2nd generation model of currency crises which of the following will make the crisis occur earlier than otherwise?

(A)    A higher government commitment to the currency peg
(B)    A higher government commitment to low inflation
(C)    A higher government commitment to low unemployment
(D)    A low output response to surprise inflation

Summary

The question belongs to Finance and it discusses about 2nd generation model of currency crisis which results in crisis occurring earlier.

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