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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. frenkel@cedes.org, m.g.rapetti@gmail.com
Martín Rapetti*
Affiliation:
Sánchez de Bustamante 27 (C1173AAA), Centro de Estudios de Estado y Sociedad and University of Buenos Aires, Buenos Aires, Argentina. frenkel@cedes.org, m.g.rapetti@gmail.com
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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

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