a) Is the Bretton Woods system collapse an example of a "first generation" balance of payments crisis? What about the 1997 East Asian crisis? Explain.

b) Why can rumors lead to a currency crisis when a country has a lot of short-term debt relative to international reserves, even when all the fundamentals of the economy are fine?

c) Explain why during emerging market crises a devaluation often has significant contractionary effects (even though in our models it has always been expansionary).

d) What is meant by "moral hazard" in the context of third generation currency crisis models?