scholarly journals An Appraisal of Floating Exchange Rate Regimes in Latin America

2017 ◽  
Vol 2 (2) ◽  
pp. 239-246
Author(s):  
Roberto Frenkel
Keyword(s):  
International Economic ◽  
Latin America ◽  
Exchange Rate ◽  
Latin American ◽  
Exchange Rate Regime ◽  
Exchange Rate Regimes ◽  
Economic Relations ◽  
International Economic Relations ◽  
Floating Exchange Rate ◽  
Latin American Countries

The exchange rate regime is a crucial variable in international economic relations. This presentation attempts to evaluate the performance of floating exchange rate regimes in the major Latin American countries.

scholarly journals Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America

2021 ◽  
Vol 32 (65) ◽  
pp. 3-18
Author(s):  
Cecilia Bermúdez ◽  
Carlos Dabús
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Exchange Rate ◽  
Empirical Evidence ◽  
Latin American ◽  
Exchange Rate Regimes ◽  
The Other ◽  
Determinants Of Economic Growth ◽  
Latin American Countries

This paper reassesses the evidence presented in Levy-Yeyati and Sturzenegger (LYS) (2003) on the relation between exchange rate regimes and economic growth. We use their de facto classification as well as their database, in order to gain robustness and efficiency in the results. We run System GMM estimations. Additionally, we focus on Latin American countries for the period 1974-2004. Differently to LYS, our evidence indicates that exchange rate regimes are not significant to explain economic growth, both in a worldwide sample of countries and particularly in Latin America. However, in this region flexible regimes appear to have more advantages in terms of the role of the determinants of economic growth in relation to the other exchange regimes.

scholarly journals Monetary integration issues in Latin America: A multivariate assessment

2008 ◽  
Vol 55 (3) ◽  
pp. 279-308
Author(s):  
Jean-Pierre Allegret ◽  
Alain Sand-Zantman
Keyword(s):  
Latin America ◽  
Exchange Rate ◽  
Business Cycles ◽  
Latin American ◽  
Monetary Union ◽  
Monetary Integration ◽  
Integration Process ◽  
Common Shocks ◽  
The Impact ◽  
Latin American Countries

This paper assesses the monetary consequences of the Latin-American integration process. Over the period 1991-2007, we analyze a sample of five Latin-American countries focusing on the feasibility of a monetary union between L.A. economies. To this end, we study the issue of business cycle synchronization with the occurrence of common shocks. First, we assess the international disturbances influence on the domestic business cycles. Second, we analyze the impact of the adoption of different exchange rate regimes on the countries' responses to shocks. .

scholarly journals Military-technical cooperation between Russia and Latin America at the present stage (cases of Venezuela, Peru, Brazil)

2019 ◽  
pp. 59-64
Author(s):  
A. Yu. Stepanov
Keyword(s):  
Latin America ◽  
Latin American ◽  
Technical Cooperation ◽  
Present Stage ◽  
Economic Relations ◽  
Latin American Countries ◽  
Development Of Partnership

The article provides the overview of military-technical cooperation (MTC) of theRussian Federationwith Latin American countries, its main trends and impact on bilateral political and economic relations withVenezuela,PeruandBrazil. After the collapse of theUSSR, the supply of domestic arms to the Latin American market declined significantly. In the 2000s,Russiaregained its position in this market. Modern MTC strategies are primarily economic, marketing and political. The development of partnership in the field of military-technical cooperation is of long-term strategic importance, since the purchase of weapons entails the need for cooperation in other areas related to its use.

HOW THE EXCHANGE RATE REGIME AFFECTS ADJUSTMENT TO LARGE OIL PRICE SWINGS IN OIL EXPORTING COUNTRIES

2021 ◽  
Author(s):  
MAJED S. ALMOZAINI
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Government Spending ◽  
Exchange Rate Regime ◽  
Exchange Rate Regimes ◽  
Oil Price ◽  
Fixed Exchange Rate ◽  
Floating Exchange Rate ◽  
The Exchange Rate

The aim of this study is to analyze how oil price shocks affect the economic growth of floating exchange rate regimes and fixed exchange rate regimes in oil-exporting countries with a ratio of oil exports to total exports exceeding 70%. Also, this study seeks to determine what monetary and fiscal policies both regimes apply in order to curb business cycles and reduce inflationary and recessionary gaps. The analytical study uses panel data for the period from 1991 to 2019, covering 24 oil-exporting countries, from the World Economic Outlook (WEO) database and World Bank. The econometric model is estimated by applying a panel VECM to examine the short- and long-term interdependencies in the macroeconomic variables. The results demonstrate that when there is a negative shock to the oil price, the exchange rate of the floating exchange rate regimes depreciates, money supply increases, and government spending decreases. In contrast, the exchange rate of the fixed exchange rate regimes fluctuates slightly; the money supply slightly decreases in the near, medium, and long term; and government spending decreases.

China's Belt and Road Initiative in Latin America: What has Changed?

2021 ◽  
pp. 186810262110478
Author(s):  
Rhys Jenkins
Keyword(s):  
Latin America ◽  
Latin American ◽  
Global Financial Crisis ◽  
Belt And Road Initiative ◽  
Economic Relations ◽  
Policy Statements ◽  
Belt And Road ◽  
The Global Financial Crisis ◽  
Latin American Countries ◽  
The Belt And Road

When China invited the Latin American countries to participate in the Belt and Road Initiative, it fuelled expectations of a much closer and more productive relationship with the region. In practice, however, there is little evidence that this was happening even before the coronavirus disease 2019 pandemic. The article shows that neither the policy statements by China nor the trends in economic relations indicate a substantive change in Sino–Latin American relations and that the Belt and Road Initiative represents a repackaging of existing relations and the continuation of trends that have been underway since the global financial crisis.

In Search of Lost Time

2019 ◽  
Vol 19 (230) ◽  
Author(s):  
Antonio David ◽  
Carlos Eduardo Gonçalves
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Exchange Rate Regimes ◽  
Flexible Exchange Rate ◽  
Output Growth ◽  
Sudden Stops ◽  
Sudden Stop ◽  
Large Panel ◽  
Floating Exchange Rate ◽  
Lost Time

This paper investigates what factors affect the duration of sudden stops in capital flows using quarterly data for a large panel of countries. We find that countries with floating exchange rate regimes tend to experience shorter sudden stop episodes and that fixed exchange rate regimes are associated with longer periods of low output growth following sudden stops. These effects are quantitatively large: having a flexible exchange rate regime increases the probability of exiting the sudden stop state by between 50 to 80 percent. Flexible exchange rate regimes significantly shorten the duration of output decelerations following sudden stops by over 30 percent. Positive variations in terms of trade also abbreviate the duration of sudden stops. In terms of policies, identification is trickier, but the evidence suggests that monetary policy tightening shortens the duration of sudden stops. Changes in capital account restrictions do not seem to matter.

scholarly journals CHANGES IN THE CHINESE DEVELOPMENT STRATEGY AFTER THE GLOBAL CRISIS AND ITS IMPACTS IN LATIN AMERICA

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Celio Hiratuka
Keyword(s):  
Latin America ◽  
Development Strategy ◽  
Latin American ◽  
Global Financial Crisis ◽  
Trade Flows ◽  
First Century ◽  
Economic Relations ◽  
New Challenges ◽  
The Global Financial Crisis ◽  
Latin American Countries

ABSTRACT This paper aims to analyze the recent changes in economic relations between Latin American countries and China in the context of the transformations occurred in the latter’s development strategy after the global financial crisis. The text argues that, in relation to the first decade of the twenty-first century, connections linked to FDI, financing flows, and infrastructure projects have been growing in importance and present new challenges to Latin America, which surpass the ones based only on trade flows.

Latin America and the Dollar Bloc in the Twenty-first Century: To Dollarize or Not?

2001 ◽  
Vol 43 (4) ◽  
pp. 1-35
Author(s):  
Kenneth P. Jameson
Keyword(s):  
Latin America ◽  
Exchange Rate ◽  
Latin American ◽  
Economic Performance ◽  
Exchange Rate Regime ◽  
Political Stability ◽  
First Century ◽  
Open Issue ◽  
Outstanding Debt ◽  
Floating Exchange Rates

AbstractThe choice of exchange rate regime is a continuing challenge to Latin American policymakers, who currently face pressure to dollarize their economies. The constraints imposed by the “dollar bloc,” the informal but powerful currency bloc that ties Latin America to the dominant currency, are central to that choice. Current weak economic performance has called the bloc's norms and principles into question and has made the exchange rate an open issue. Ecuador's full official dollarization is one possible strategy for countries with political stability but poor economic performance to gain access to needed dollar resources. Most of Latin America, however, will continue with variants of managed floating exchange rates, and the periodic foreign exchange crises will provide access to official dollar resources and facilitate renegotiation of the terms of outstanding debt.

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

2012 ◽  
Vol 30 (1) ◽  
pp. 157-188 ◽  
Author(s):  
Roberto Frenkel ◽  
Martín Rapetti
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Latin American ◽  
Exchange Rate Regimes ◽  
Real Exchange Rates ◽  
Macroeconomic Performance ◽  
The 1950S ◽  
Nominal Anchor ◽  
The Relationship ◽  
Latin American Countries

AbstractThe 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.

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