Hostname: page-component-cd9895bd7-q99xh Total loading time: 0 Render date: 2024-12-25T20:28:18.007Z Has data issue: false hasContentIssue false
  • English
  • Français

Exchange rate regimes in the major Latin American countries since the 1950s: lessons from history*

Published online by Cambridge University Press:  12 January 2012

Roberto Frenkel  and
Martín Rapetti
Roberto Frenkel*
Affiliation:
Sánchez de Bustamante 27 (C1173AAA), Centro de Estudios de Estado y Sociedad and University of Buenos Aires, Buenos Aires, Argentina. [email protected], [email protected]
Martín Rapetti*
Affiliation:
Sánchez de Bustamante 27 (C1173AAA), Centro de Estudios de Estado y Sociedad and University of Buenos Aires, Buenos Aires, Argentina. [email protected], [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

The paper analyses exchange rate regimes implemented by the major Latin American (LA) countries since the 1950s, with special attention to the period beginning in the 1970s. The aim is to evaluate the relationship between exchange rate regimes and macroeconomic performance. After an overview of the main trends followed by the major LA countries over the last 60 years, the paper focusses on regimes that were implemented (1) with stabilisation purposes (nominal anchor) and (2) with the aim of targeting competitive and stable real exchange rates. These sections analyse in greater detail some important links between exchange rate regimes and macroeconomic performance. The paper closes with an assessment of the experiences with exchange rate regimes in LA.

Resumen

El trabajo analiza los regímenes cambiarios implementados por los principales países de América Latina desde la década de 1950, con especial atención al período iniciado en la década de 1970. El objetivo es analizar la relación entre regímenes cambiarios y desempeño macroeconómico. Después de una revisión de las principales tendencias seguidas por los principales países de la región, el trabajo se centra en los regímenes implementados (1) con fines de estabilización (ancla nominal) y (2) con el objeto de mantener tipos de cambio real competitivos y estables. Estas secciones analizan con mayor detalle algunos vínculos entre regímenes cambiarios y desempeño macroeconómico. El artículo concluye con una evaluación sobre las experiencias cambiarias en América Latina.

Keywords

exchange rate regimesLatin Americaeconomic performancereal exchange ratestabilisationN16O11F30regímenes cambiariosAmérica Latinadesempeño económicotipo de cambio realestabilización
Type
Articles/Artículos
Information
Revista de Historia Economica - Journal of Iberian and Latin American Economic History , Volume 30 , Issue 1 , 20 March 2012 , pp. 157 - 188
Copyright
Copyright © Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agosin, M. (1999): «Trade and Growth in Chile». CEPAL Review, 68, pp. 79-100.Google Scholar
Agosin, M. (2009): «Evolución macroeconómica y financiera de Chile en la última década», Documento Técnico 4, Iniciativa para la Transparencia Financiera.Google Scholar
Aizenman, J.Lee, J. (2007): «International Reserves: Precautionary vs. Mercantilist Views, Theory and Evidence». Open Economic Review, 18 (2), pp. 191-214.CrossRefGoogle Scholar
Albrieu, R.Fanelli, J.M. (2008): «¿Stop-and-go o Go-and-fail? Sobre aceleraciones, crisis e instituciones en la Argentina». Desarrollo Económico, 48 (190-191), pp. 235-268.Google Scholar
Barbosa-Filho, N. (2008): «Inflation Targeting in Brazil 1999-2006». International Review of Applied Economics, 22 (2), pp. 187-200.CrossRefGoogle Scholar
Calvo, G.Fernández, R. (1982): «Pauta cambiaria y déficit fiscal», in R. Fernández and C. Rordríguez (eds), Inflación y Estabilidad. Ediciones Macchi, pp. 54-72.Google Scholar
Calvo, G.Reinhart, C. (2002): «Fear of Floating». Quarterly Journal of Economics, 107 (2), pp. 379-408.CrossRefGoogle Scholar
Chang, R. (2008): «Inflation Targeting, Reserve Accumulation, and Exchange Rate Management in Latin America». Borradores de Economía, 487, Banco de la República de Colombia, pp. 1-78.Google Scholar
Damill, M.; Frenkel, R.Rapetti, M. (2010): «The Argentinean Debt: History, Default and Restructuring», in B. Herman, J. A. Ocampo and S. Spiegel (eds), Overcoming Developing Countries Debt Crises. New York: Oxford University Press, pp. 179-228.CrossRefGoogle Scholar
Dancourt, O. (2009): «Perú: la recesión del 2008-09 en perspectiva», Documento Técnico 3, Iniciativa para la Transparencia Financiera.Google Scholar
de Gregorio, J.; Tokman, A.Valdés, R. (2005): «Flexible Exchange Rate with Inflation Targeting in Chile: Experience and Issues». Economic Policy Papers, 14, Banco Central de Chile, pp. 1-24.Google Scholar
Dooley, M.; Garber, P.Folkerts-Landau, D. (2007): «Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery», in R. Clarida (ed.), Current Account Imbalances: Sustainability and Adjustment. Chicago: University of Chicago Press, pp. 103-132.CrossRefGoogle Scholar
Easterly, W. (2005): «National Policies and Economic Growth: A Reappraisal», in P. Aghion and S. Durlauf (eds), Handbook of Economic Growth. Amsterdam: North-Holland, pp. 1015-1060.Google Scholar
Frenkel, R. (1983): «Mercado financiero, expectativas cambiarias y movimientos de capital». El Trimestre Económico, 50 (200), pp. 2041-2076.Google Scholar
Frenkel, R. (2007): «The Sustainability of Monetary Sterilization Policies». CEPAL Review, 93, pp. 29-36.CrossRefGoogle Scholar
Frenkel, R. (2008): «The Competitive Real Exchange Rate Regime, Inflation and Monetary Policy». CEPAL Review, 96, pp. 191-201.CrossRefGoogle Scholar
Frenkel, R.Rapetti, M. (2008): «Five Years of Competitive and Stable Real Exchange Rate in Argentina, 2002-2007». International Review of Applied Economics, 22 (2), pp. 215-226.CrossRefGoogle Scholar
Frenkel, R.Rapetti, M. (2009): «A Developing Country View of the Current Global Crisis: What Should Not Be Forgotten and What Should Be Done». Cambridge Journal of Economics, 33 (4), pp. 685-702.CrossRefGoogle Scholar
Frenkel, R., Rapetti, M. (2010): «A Concise History of Exchange Rate Regimes in Latin America». Working Paper 2010-01, University of Massachusetts, Amherst, MA.CrossRefGoogle Scholar
Gala, P. (2008): «Real Exchange Rate Levels and Economic Development: Theoretical Analysis and Econometric Evidence». Cambridge Journal of Economics, 32 (2), pp. 273-288.CrossRefGoogle Scholar
Galindo, L.Ros, J. (2008): «Alternatives to Inflation Targeting in Mexico». International Review of Applied Economics, 22 (2), pp. 201-214.CrossRefGoogle Scholar
Hausmann, R.; Prichett, L.Rodrik, D. (2005): «Growth Accelerations». Journal of Economic Growth, 10 (4), pp. 303-329.CrossRefGoogle Scholar
Levy-Yeyati, E., Sturzenegger, F. (2007): «Fear of Appreciation». Policy Research Working Paper Series 4387, The World Bank.CrossRefGoogle Scholar
Rapetti, M. (2011): «Macroeconomic Policy Coordination in a Competitive Real Exchange Rate Strategy for Development». Working Paper 2011-09, University of Massachusetts, Amherst, MA.Google Scholar
Rapetti, M., Skott, P., Razmi, A. (2011): «The Real Exchange Rate and Economic Growth: Are Developing Countries Different?». Working Paper 2011-07, University of Massachusetts, Amherst, MA.Google Scholar
Rodrik, D. (2008): «The Real Exchange Rate and Economic Growth». Brookings Papers on Economic Activity, 2, pp. 365-412.CrossRefGoogle Scholar
Tavosnanska, A.Herrera, G. (2011): «La industria argentina a comienzos del siglo XXI. Aportes para una revisión de la experiencia reciente». Revista de la CEPAL, 104, pp. 103-122.Google Scholar
Taylor, L. (1998): «Capital Market Crises: Liberalization, Fixed Exchange Rates and Market-driven Destabilization». Cambridge Journal of Economics, 22 (6), pp. 663-676.CrossRefGoogle Scholar
Vergara, R. (1994): «Política cambiaria en Chile: la Experiencia de una década (1984-1994)». Estudios Públicos, 56, pp. 85-102.Google Scholar
Williamson, J. (1996): The Crawling Band as an Exchange Rate Regime. Lessons from Chile, Colombia and Israel. Washington DC: Institute for International Economics.Google Scholar