Economic growth cycles in Latin America and developing countries

The Minskyan approach to financial instability and its effects on the real economy have recently been revived in order to explain the exchange rate crises undergone by the so-called emergent economies. Economies of this type are characterized by repeated scarcity of foreign currency, which can be explained by using Neo-Schumpeterian theory. Based on the Minskyan approach and on the Neo-Schumpeterian literature, this study seeks to demonstrate that there is a cyclic recurrence of exchange rate crises in Latin-American (peripheral) economies. By using data on international liquidity, the balance of payments and the increase in production in the G7 economies and in thirteen Latin-American economies, it was found that the Latin-American economies reflect the cycles of international liquidity.

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Year of publication:	2006-12
Authors:	Amado, Adriana Moreira ; Resende, Marco Flávio da Cunha ; Frederico G. Jayme Jr.
Institutions:	Centro de Desenvolvimento e Planejamento Regional (Cedeplar), Universidade Federal de Minas Gerais
Subject:	international liquidity \| financial instability \| cycles

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Extent:	application/pdf
Series:	Textos para Discussão Cedeplar-UFMG. - ISSN 2318-2377.
Type of publication:	Book / Working Paper
Language:	English
Notes:	24 pages
Classification:	F32 - Current Account Adjustment; Short-Term Capital Movements ; F33 - International Monetary Arrangements and Institutions ; F43 - Economic Growth of Open Economies ; O30 - Technological Change; Research and Development. General
Source:	RePEc - Research Papers in Economics