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Krugman (1979) Model a) Let say a country runs a trade deficit of $100 but has a balanced budget, when do they experience a currency

Krugman (1979) Model

a) Let say a country runs a trade deficit of $100 but has a balanced budget, when do they experience a currency crisis in the Krugman model, if at all?

b) What happens to reserve balances if a country with a floating exchange rate runs a large budget deficit?

c) What happens to reserve balances if a country with a fixed exchange rate runs a large budget deficit?

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