Currency crisis and external fragility: A minskyan interpretation applied to the Brazilian economy between 1999 and 2013
This work has two goals. The first one is to develop an interpretation for open economies founded on Minsky’s financial fragility hypothesis about the process of a currency crisis and its determinants. The deterioration of an economy’s external financial structure is identified as the reason for the...
| Authors: | , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2015 |
| Country: | Brasil |
| Institution: | Universidade Estadual Paulista (UNESP) |
| Repository: | Repositório Institucional da UNESP |
| Language: | English |
| OAI Identifier: | oai:repositorio.unesp.br:11449/171365 |
| Online Access: | http://dx.doi.org/10.1590/0103-6351/2738 http://hdl.handle.net/11449/171365 |
| Access Level: | Open access |
| Keyword: | Brazilian economy Currency crisis External fragility Minsky |
| Summary: | This work has two goals. The first one is to develop an interpretation for open economies founded on Minsky’s financial fragility hypothesis about the process of a currency crisis and its determinants. The deterioration of an economy’s external financial structure is identified as the reason for the increase of its crisis susceptibility. With this approach, we create external fragility indexes intending to measure an economy’s crisis susceptibility. Our second objective is to evaluate the Brazilian external fragility between 1999 and 2013 using the index and the interpretation previously developed. The results suggest that Brazilian’s external fragility suffered a gradual and significant decrease and tends to follow stable trend in the coming years. |
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