(See related pages)
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| banking crisis | A loss of confidence in the banking system that leads to a run on banks, as individuals and companies withdraw their deposits. (See page(s) 340) |
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| central bank | The generic name given to a country's primary monetary authority. It usually has the responsibility for issuing currency, administering monetary policy, holding member banks' deposits, and facilitating the nation's banking industry. (See page(s) 325) |
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| currency board | Means of controlling a country's currency. (See page(s) 339) |
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| currency crisis | Occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency or forces authorities to expend large volumes of international currency reserves and sharply increase interest rates to defend the prevailing exchange rate. (See page(s) 340) |
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| dirty-float system | A system under which a country's currency is nominally allowed to float freely against other currencies, but in which the government will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value. (See page(s) 325) |
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| fixed exchange rates | A system under which the exchange rate for converting one currency into another is fixed. (See page(s) 325) |
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| floating exchange rates | A system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand. (See page(s) 325) |
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| foreign debt crisis | Situation in which a country cannot service its foreign debt obligations, whether private-sector or government debt. (See page(s) 340) |
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| gold standard | The practice of pegging currencies to gold and guaranteeing convertibility. (See page(s) 327) |
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| international monetary system | Institutional arrangements countries adopt to govern exchange rates. (See page(s) 324) |
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| moral hazard | Arises when people behave recklessly because they know they will be saved if things go wrong. (See page(s) 353) |
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| pegged exchange rate | Currency value is fixed relative to a reference currency. (See page(s) 325) |