| Abstract: |
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. |