Determinative common factors of currency and financial crisis

Vol. 30 No. 4 (2010)

Oct-Dec / 2010
Published October 1, 2010
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bessa, Cristina Fátima Martins de, Tito Belchior Silva Moreira, Maurício de Paula Pinto Barata, and Fernando Antônio Ribeiro Soares. 2010. “Determinative Common Factors of Currency and Financial Crisis”. Brazilian Journal of Political Economy 30 (4):604-24.

Determinative common factors of currency and financial crisis

Cristina Fátima Martins de Bessa
Mestre em Economia pela Universidade Católica de Brasília
Tito Belchior Silva Moreira
Universidade Católica de Brasília
Maurício de Paula Pinto Barata
Universidade de Brasília
Fernando Antônio Ribeiro Soares
Doutor em Economia pela UnB
Brazilian Journal of Political Economy, Vol. 30 No. 4 (2010), Oct-Dec / 2010, Pages 604-624


This paper identifies and evaluates determinative common factors of currency and financial crisis in relation to 86 crises episodes between 1970-2004, based on factor analysis, cluster and discriminant analysis. One evidenced that the rise of the ratios of domestic credit, fiscal deficit and residents bank deposits to the GDP is inherent to the different types of crises classified for economic literature. It was also identified as common factors to these episodes some indicators that capture the excessive monetary expansion of the economies and that reflect the fall in international reserves, represented by M2/Reserves and Imports/Reserves ratios and also the total volume of international reserves.

JEL Classification: F31; F41.

Keywords: currency and financial crisis factor analysis discriminant analysis