IDEAS home Printed from https://ideas.repec.org/a/bej/issued/v5y2002i1boye.html
   My bibliography  Save this article

In Search of the Divide among exchange rate regimes in Latin America

Author

Listed:
  • François Boye

Abstract

Is the debate over the choice of an exchange rate regime really relevant to Latin America? To address that major issue of economic policy, this paper considers the period from 1995 through 1998 and tests on monthly data the hypothesis of heterogeneity among countries with a managed float, countries with crawling bands and the Argentine convertibility system, from three points of view: a) in terms of macro-economic evolution, b) in terms of economic policy, and c) in terms of impulse response to exogenous shocks. Its findings totally take issue with conventional wisdom: (a) the Argentine convertibility system does not translate into Argentina being an outlier in Latin America from any macro-economic point of view; (b) countries with managed float and those with crawling bands are not statistically different from any macro-economic point of view; (c) Latin American countries, albeit abiding by different exchange rate regimes, reacted the same way to the capital outflow shock of the nineties. In other words, the debate over the choice of an exchange rate regime has to be de-emphasized in LatinAmerica.

Suggested Citation

  • François Boye, 2002. "In Search of the Divide among exchange rate regimes in Latin America," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 5(1), May.
    • Handle: RePEc:bej:issued:v:5:y:2002:i:1:boye
    as

    Download full text from publisher

    File URL: http://www.beje.decon.ufpe.br/v5n1/boye.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steve H. Hanke, 1999. "Dollarization For Argentina," Journal of Applied Corporate Finance, Morgan Stanley, vol. 12(1), pages 121-126, March.
    2. Steve H. Hanke & Kurt Schuler, 1999. "A Monetary Constitution for Argentina: Rules for Dollarization," Cato Journal, Cato Journal, Cato Institute, vol. 18(3), pages 405-419, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reiner Eichenberger & Sergio Rossi, 2004. "Die Deregulierung der Zentralbanken: Auf zu einem internationalen Markt für gute Geldpolitik!," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 140(III), pages 327-353, September.
    2. Calvo, Guillermo A, 2001. "Capital Markets and the Exchange Rate with Special Reference to the Dollarization Debate in Latin America," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 312-334, May.
    3. Dean, James W., 2001. "Should Latin America's common law marriages to the US dollar be legalized? Should Canada's?," Journal of Policy Modeling, Elsevier, vol. 23(3), pages 291-300, April.
    4. Roberto Chang & Andres Velasco, 2002. "Dollarization: Analytical Issues," NBER Working Papers 8838, National Bureau of Economic Research, Inc.
    5. Le Maux, Laurent, 2003. "Dollarisation officielle : analyse critique et alternative," L'Actualité Economique, Société Canadienne de Science Economique, vol. 79(3), pages 367-391, Septembre.
    6. Myriam Quispe-Agnoli, 2001. "Monetary policy alternatives for Latin America," Economic Review, Federal Reserve Bank of Atlanta, vol. 86(Q3), pages 43-53.
    7. Roberto Chang, 2000. "Dollarization: a scorecard," Economic Review, Federal Reserve Bank of Atlanta, vol. 85(Q3), pages 1-12.
    8. Diego Nicolás Moccero, 2001. "Esquemas Cambiarios y Monetarios Alternativos en un Modelo de Interdependencia Macroeconómica entre Argentina y Brasil," Department of Economics, Working Papers 031, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    9. Yang, Ginny, 2017. "Prominent Economists’ Views: China’s Exchange Rate—Fixed or Floating?," Studies in Applied Economics 82, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    10. Ilan Goldfajn & Gino Olivares, 2000. "Is adopting Full Dollarization the solution? Looking at the evidence," Textos para discussão 416, Department of Economics PUC-Rio (Brazil).
    11. Sophie Chauvin, 2001. "Exit Options for Argentina with a Special Focus on Their Impact on External Trade," Working Papers 2001-07, CEPII research center.
    12. Emilio Ocampo, 2023. "Dollarization as an Effective Commitment Device: The Case of Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 848, Universidad del CEMA.
    13. Araujo, Aloisio & Leon, Marcia & Santos, Rafael, 2013. "Welfare analysis of currency regimes with defaultable debts," Journal of International Economics, Elsevier, vol. 89(1), pages 143-153.
    14. Zeljko Bogetic, 2005. "Official Dollarization: Current Experiences and Issues, Cato Journal, Vol. 20, No. 2 (Fall 2000), 179-213," International Finance 0510006, University Library of Munich, Germany.
    15. Domac, Ilker & Peters, Kyle & Yuzefovich, Yevgeny, 2001. "Does the exchange rate regime affect macroeconomic performance : evidence from transition economics," Policy Research Working Paper Series 2642, The World Bank.
    16. Jérôme Blanc, 2014. ""Argentina o dolarización", ou quand la monnaie revient à la souveraineté," Post-Print halshs-01016336, HAL.
    17. repec:dau:papers:123456789/5486 is not listed on IDEAS
    18. Corrinne Ho, 2002. "A survey of the institutional and operational aspects of modern-day currency boards," BIS Working Papers 110, Bank for International Settlements.
    19. Stefanescu, Razvan & Dumitriu, Ramona, 2016. "Particularitǎţi ale evoluţiei variabilelor financiare [Some particularities of the financial variables evolution]," MPRA Paper 73481, University Library of Munich, Germany, revised 02 Sep 2016.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bej:issued:v:5:y:2002:i:1:boye. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jose Ricardo Nogueira (email available below). General contact details of provider: https://edirc.repec.org/data/dufpebr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.