The metamorphosis of external vulnerability: from ‘original sin’ to ‘original sin redux’

Luiz Fernando de Paula, Barbara Fritz and Daniela Magalhães Prates

Chapter 3 in Currency Hierarchy and Financial Globalisation, 2026, pp 57-80 from Edward Elgar Publishing

Abstract: This chapter analyses the impact of new patterns of capital flows under financial globalisation, in particular the recent wave of using emerging market currencies for international short-term investments and its influence on the external vulnerability of these countries, contrasting it with the patterns of financial vulnerability of traditional foreign currency-denominated debt. To do so, we analyse the phenomenon of ‘original sin redux’, as opposed to the well-established phenomenon of ‘original sin’, and provide a balance sheet analysis inspired by Minsky's framework to assess the metamorphosis of these vulnerabilities systematically.

Keywords: External vulnerability; Emerging market economies; Original sin redux; Balance sheet analysis; Minsky (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035328826
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035328833.00012 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:23142_4

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().