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

Alexis Cruz-Rodriguez

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Currency crises; foreign exchange; fiscal sustainability; probit model (search for similar items in EconPapers)
JEL-codes: E62 F31 F33 (search for similar items in EconPapers)
Date: 2013-11-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in REVIEW OF ECONOMIC PERSPECTIVES 4.13(2013): pp. 176-194

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72102/1/MPRA_paper_72102.pdf original version (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:pra:mprapa:72102

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().