IDEAS home Printed from https://ideas.repec.org/a/umk/journl/v5y2013i2p37-58.html
   My bibliography  Save this article

Macroeconomic Adjustment and Structural Change: The Experience of Argentina, Brazil and Chile in 2000-2010

Author

Listed:
  • Jorge Katz

    (INTELIS, University of Chile)

  • Gonzalo Bernat

    (University of Buenos Aires)

Abstract

This paper attempts to throw light upon the influence macroeconomic policies have on structural change and microeconomic behaviour. We compare the cases of Chile and Brazil, on the one hand, and Argentina on the other, as these countries opted for different macroeconomic policy regimes. Whereas Chile and Brazil adopted an ‘inflation targeting’ regime, Argentina proceeded on the basis of an administrated exchange rate regime. The main conclusion of our research is that both regimes were incapable of adequately dealing with issues of international competitiveness and of equity improvement and had to be supplemented with further public sector interventions beyond management of the fundamentals in the economy. The evidence suggests that more than adequate management of macro fundamentals is needed in ‘real life’ policy making.

Suggested Citation

  • Jorge Katz & Gonzalo Bernat, 2013. "Macroeconomic Adjustment and Structural Change: The Experience of Argentina, Brazil and Chile in 2000-2010," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 37-58, July.
    • Handle: RePEc:umk:journl:v:5:y:2013:i:2:p:37-58
    as

    Download full text from publisher

    File URL: http://ijie.um.edu.my/filebank/published_article/4919/Fulltext%202.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ocampo, José Antonio, 2007. "La macroeconomía de la bonanza económica latinoamericana," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Diego Bastourre & Jorge Carrera & Javier Ibarlucia, 2008. "Commodity Prices in Argentina. What Does Move the Wind?," Money Affairs, CEMLA, vol. 0(1), pages 1-30, January-J.
    3. Broto, Carmen, 2011. "Inflation targeting in Latin America: Empirical analysis using GARCH models," Economic Modelling, Elsevier, vol. 28(3), pages 1424-1434, May.
    4. Mulder, Nanno, 2006. "Aprovechar el auge exportador de productos básicos evitando la enfermedad holandesa," Comercio Internacional 4423, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. International Monetary Fund, 2010. "When and Why Worry About Real Exchange Rate Appreciation? The Missing Link Between Dutch Disease and Growth," IMF Working Papers 2010/271, International Monetary Fund.
    6. Bello, Omar & Heresi, Rodrigo, 2008. "El auge reciente de precios de los productos básicos en perspectiva histórica," Macroeconomía del Desarrollo 5436, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Fanelli, José María & Frenkel, Roberto, 1995. "Estabilidad y estructura: interacciones en el crecimiento económico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    8. Spatafora, Nikola & Warner, Andrew, 1995. "Macroeconomic effects of terms-of-trade shocks : the case of oil-exporting countries," Policy Research Working Paper Series 1410, The World Bank.
    9. Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009. "Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
    10. Cunha, André Moreira & Lélis, Marcos Tadeo Caputi & Prates, Daniela Magalhães, 2009. "La gestión del régimen cambiario en Brasil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    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. Jaime Bonet-Morón & Gerson Javier Pérez-Valbuena & Lucas Marín-Llanes, 2019. "Oil booms and subnational public investment: a case-study for Colombia," Documentos de trabajo sobre Economía Regional y Urbana 283, Banco de la Republica de Colombia.
    2. Eszter WIRTH, 2019. "The Coherence between Sovereign Wealth Funds and Fiscal and Monetary Policies: the Norwegian Case (2001-2017)," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 1.
    3. Juan José Echavarría & Andrés González, 2012. "Choques internacionales reales y financieros y su impacto sobre la economía colombiana," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 30(69), pages 14-66, December.
    4. Barrientos, Armando, 2011. "On the Distributional Implications of Social Protection Reforms in Latin America," WIDER Working Paper Series 069, World Institute for Development Economic Research (UNU-WIDER).
    5. Arguello, Ricardo & Jimenez, Dora, 2015. "Dutch Disease, Informality, and Employment Intensity in Colombia," Conference papers 332597, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Brahmbhatt, Milan & Canuto, Otaviano & Vostroknutova, Ekaterina, 2010. "Dealing with Dutch Disease," World Bank - Economic Premise, The World Bank, issue 16, pages 1-7, June.
    7. Zoulfikar Mehoumoud Issop, 2016. "Le Syndrome hollandais dans les DOM est-il toujours d'actualité ?," Post-Print hal-01618689, HAL.
    8. Nouf Alsharif & Sambit Bhattacharyya & Maurizio Intartaglia, 2016. "Economic Diversification in Resource Rich Countries: Uncovering the State of Knowledge," Working Paper Series 09816, Department of Economics, University of Sussex Business School.
    9. Luis Hernando Portillo Riascos, 2021. "The Cyclical Position of The Fiscal Policy in Colombia During the Period 1990-2015," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 95, pages 45-83, July-Dece.
    10. Miguel Nino-Zarazua, 2011. "Mexico’s Progresa-Oportunidades and the emergence of Social Assistance in Latin America," Global Development Institute Working Paper Series 14211, GDI, The University of Manchester.
    11. Medeiros, Marcelo & Souza, Pedro H.G.F., 2013. "The State and income inequality in Brazil," Institute for Research on Labor and Employment, Working Paper Series qt584222f0, Institute of Industrial Relations, UC Berkeley.
    12. Roberto Frenkel & Martin Rapetti, 2012. "External Fragility or Deindustrialization: What is the Main Threat to Latin American Countries in the 2010s?," World Economic Review, World Economics Association, vol. 2012(1), pages 1-37, September.
    13. Mario Cimoli & Jose Antonio Ocampo & Gabriel Porcile & Nunzia Saporito, 2020. "Choosing sides in the trilemma: international financial cycles and structural change in developing economies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 740-761, October.
    14. Seedwell Hove & Albert Touna Mama & Fulbert Tchana Tchana, 2016. "Terms of Trade Shocks and Inflation Targeting in Emerging Market Economies," South African Journal of Economics, Economic Society of South Africa, vol. 84(1), pages 81-108, March.
    15. Stephany Griffith-Jones & José Antonio Ocampo, 2009. "Sovereign Wealth Funds : a Developing Country Perspective," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 241-254.
    16. Md Ashiq Iqbal & Towfiqul Islam Khan & Tazeen Tahsina, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," CPD Working Paper 75, Centre for Policy Dialogue (CPD).
    17. Ms. Evridiki Tsounta & Anayochukwu Osueke, 2014. "What is Behind Latin America’s Declining Income Inequality?," IMF Working Papers 2014/124, International Monetary Fund.
    18. Chen, Li-Ju & Hu, Shih-Wen & Wang, Vey & Wen, Jiandong & Ye, Chusheng, 2014. "The effects of purchasing and price subsidy policies for agricultural products under target zones," Economic Modelling, Elsevier, vol. 43(C), pages 439-447.
    19. Koji Kubo, 2013. "Real exchange rate appreciation, resource boom, and policy reform in Myanmar," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 110-126, May.
    20. Verónica Amarante & Martín Brun, 2018. "Cash Transfers in Latin America: Effects on Poverty and Redistribution," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2018), pages 1-31, November.

    More about this item

    Keywords

    macroeconomic policy; macro-to-micro interactions; structural change;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    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:umk:journl:v:5:y:2013:i:2:p:37-58. 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: Teoh Wern Jun (email available below). General contact details of provider: https://edirc.repec.org/data/feaummy.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.