479 research outputs found
How Optimal are the Extremes? Latin American Exchange Rate Policies During the Asian Crisis
Exchange rate, Crawling-bands, Currency boards, Macroeconomic sustainability, Latin America
Real Macroeconomic Stability and the Capital Account in Chile and Colombia
In 1995, when contagion from the tequila crisis was spreading in latin America, both Chile and Colombia were exempt from contagion and presented high rates of economic growth. Several analysts attribute this positive performance to the fact that both had undertaken prudential measures to avoid excessive exposure to short term capital flows and pressures towards excessive real exchange rate appreciation: Both countries were using a reserve requirement on short term foreign indebtedness, crawling-bands, and other instruments for reducing domestic vulnerability to capital flows. The parallelism between Chile and Colombia continued after the Asian crisis. In this period, despite the fact that short-term liabilities represented only a small share of foreign debt in both countries, vulnerability to the international financial crisis was high. In both, real interest rates rose sharply in 1998 and GDP growth was negative in 1999. The similarities between Chile and Colombia, however, do not go much farther. During the 1990s, GDP growth rates were very high in Chile while in Colombia they were below historical standards. Chile had fiscal surpluses and high private savings, while in Colombia there was a rapidly increasing fiscal deficit and falling domestic savings. This paper presents a comparative analysis of the macroeconomic policies of Chile and Colombia during the 1990s, in particular the exchange rate regimes, the capital account regulations, and the gestation and management of financial crises.
La des-industrialización en la revolución neoliberal de la dictadura, 1973-81
En este artículo se exponen las principales reformas comerciales, nancieras y cambiarias efectuadas en Chile entre 1973 y 1981, analizando en particular el impacto que ellas tuvieron en el sector industrial. El artículo muestra como, duran- te la revolución neoliberal de la dictadura, Chile retrocedió profundamente en su grado de industrialización, en una economía ahora caracterizada por gran aper- tura comercial, privatizaciones y desregulaciones, con plena ausencia de políticas de desarrollo productivo. Se analiza el impacto de este nuevo enfoque económi- co en la evolución global y composición del balance externo, la producción e in- tercambio comercial, en un proceso que culminó en la grave crisis de la deuda en 1982.Palabras claves: Industrialización, Chile, historia económica, privatizaciones.AbstractThis article deals with the main trade, nancial and exchange reforms undertaken in Chile between 1973 and 1981, focussing in particular on their impact on the industrial sector. The article shows how, during the neoliberal revolution of the dictatorship, Chile really went backwards regarding industrialisation, in an economy now characterised by a great degree of trade openness, privatisation, deregulation, and lack of productive development policies. It is also analyzed the impact of this new economic approach on the global evolution and external balance’s composition, production and commercial exchange, in a process that ended with the profound debt crisis of 1982.Keywords: Industrialization, Chile, economic history, privatizations
Policy regimes, inequality, poverty and growth: The Chilean experience, 1973 - 2010
Since the 1970s, Chile has exhibited a highly skewed income distribution accompanied with strong fluctuations over time. Although income distribution worsened notably in the 1970s-80s, a significant improvement was recorded in the first half of the 1990s, resulting from better economic and social policies in the return to democracy. Nonetheless, Chile still faces significant challenges to improve development. There must be an active macroeconomic policy focused on the real economy. Chile also needs profound microeconomic reforms, including (i) capital markets, developing long-term financing channels for small businesses; (ii) radical progress in quality of education and labour training; and (iii) vigorous public support for innovation
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Macroeconomics-for-Growth in Emerging Economies
In this article we analyze, first, why funds continued to flow towards emerging economies while fundamentals in host countries had been deteriorating before the Asian crisis (a rising external deficit, with a significant liquid component; appreciating exchange rates; low capital formation, particularly in Latin America), and why funding remains dry for long since 1998; the role of the nature of the predominant agents and of a process of flows rather than one shot building of stock of foreign capital are stressed. Then, the analysis focuses on the interrelations of capital flows and fiscal, monetary and exchange-rate policies. Finally, some policy implications are presented for boom-and-bust stages of cycles led by capital flows
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