One may predict the timing of a crisis by analyzing the expectations of investors with respect to:
A) the tendency of the central bank to monetize debt.
B) the health of the economy, especially unemployment and GDP.
C) the long-run current account deficit.
D) the credentials of bank officials and their previous experience handling currency crises.

Question

Quizplus · Accepted Answer

Investor expectations regarding the central bank's tendency to monetize debt can signal a potential crisis, as it may lead to inflationary pressures and loss of confidence in the currency.

One May Predict the Timing of a Crisis by Analyzing