Munich Personal RePEc Archive

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

Cruz-Rodríguez, Alexis (2013): The Relationship between Fiscal Sustainability and Currency Crises in Some Selected Countries. Published in: REVIEW OF ECONOMIC PERSPECTIVES , Vol. 13, No. 4 (31 December 2013): pp. 176-194.

[img]
Preview
PDF
MPRA_paper_72102.pdf

Download (527kB) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.