The Relationship between Fiscal Sustainability and Currency Crises in Some Selected Countries

• Authors: Alexis Cruz-Rodríguez
• Languages of publication: EN

Abstracts

EN

The aim of this article is to assess whether a Fiscal Sustainability Indicator (FSI) can be used to predict the probability that a currency crisis occurs. The FSI developed by Croce and Juan-Ramón (2003) is employed. Two different definitions for currency crises are used to evaluate whether they induce different results in the analysis. In general, the results suggest that the lagged FSI has an explanatory power over currency crises in some countries.

Keywords

EN

Currency crises; foreign exchange; fiscal sustainability; probit model

• Publisher: Sciendo
• Journal: Review of Economic Perspectives
• Year: 2013
• Volume: 13
• Issue: 4
• Pages: 176-194

Dates

published

2013-12-01

online

2014-01-25

Contributors

author

Alexis Cruz-Rodríguez

• Pontificia Universidad Católica Madre y Maestra, Av. Abraham Lincoln Esq. Rómulo Betancourt, Ensanche La Julia, Santo Domingo, Dominican Republic

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Identifiers

DOI

10.2478/revecp-2013-0008