Effects of Currency Crises on Output: A Comprehensive Model of Currency Crises

Different kinds of currency crises have different economic effects. This paper mainly discusses the relationship between currency crises and output level. In the paper, an exchange rate-output model consisting of IPLM curve and aggregate output curve is built, indicating the inner relevance of the three-generation currency crises and models. In the model, the first-generation and second-generation currency crises models are exemplified for the third-generation currency crises model, so as to unify the three-generation currency crises models to explain the different effects of currency crises on economic output.