nep-lam New Economics Papers
on Central and South America
Issue of 2007‒01‒02
one paper chosen by
Maximo Rossi
Universidad de la Republica

  1. Economic growth cycles in Latin America and developing countries By Adriana Moreira Amado; Marco Flávio da Cunha Resende; Frederico G. Jayme Jr.

  1. By: Adriana Moreira Amado (UnB); Marco Flávio da Cunha Resende (Cedeplar-UFMG); Frederico G. Jayme Jr. (Cedeplar-UFMG)
    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.
    Keywords: international liquidity; financial instability; cycles
    JEL: F32 F33 F43 O30
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:cdp:texdis:td297&r=lam

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