... the bankingsystem (for instance, an asset management company). Also, when loans are set in nominalterms, inflation reduces the value of real bank debt outstanding. Since inflation ... Reserve Bank of Atlanta., 1998, OFinancial Crises in Emerging Markets: A Canonical Model0, NBERWorking Paper No. 6606.Chari, V.V., and Ravi Jagannathan, 1988, OBanking Panics, Information, ... possibly reflecting an increase in default risk premiums.F. Inflation, the Exchange Rate, and the Government BalanceBanking crises are accompanied by a substantial increase in inflation...