Mario Cimoli, José Antonio Ocampo and Gabriel Porcile

Author Archive | Mario Cimoli, José Antonio Ocampo and Gabriel Porcile

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Financial Cycles and the Macroeconomic Dynamics of Developing Economies

This paper discusses the impact of financial cycles on the macroeconomic dynamics of developing economies. The main argument is that these cycles have a strong impact on key macroeconomic prices―in particular the real exchange rate―heightening external disequilibrium. The combination of an appreciated currency with subsequent external crises compromises investment, and therefore the accumulation of production […]

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