EXCHANGE RATE REGIMES AND FISCAL PERFORMANCE. DO FIXED EXCHANGE RATE REGIMES GENERATE MORE DISCIPLINE THAN FLEXIBLE ONES?

This paper analyzes the influence of exchange rate regimes on fiscal performance, focusing on the difference between fixed and flexible exchange rates. For these ends, a sample of 83 countries for the 1974-1998 period, the GMM methodology for dynamic proposal panel models proposed by Arellano and Bond (1991) and diverse exchange rate classifications are used. In relation to the latter, this paper discusses recent regime classifications and proposes a new exchange rate classification that permits to cover possible inconsistencies between the commitment of the central bank and its observed behavior. The results suggest that the influence of regimes on fiscal performance depend on the international context, specifically the possibility of indebtedness and of the characteristics of the international finance system –integration, volatility and dominant financial structure-. In other words, it depends on credit availability as well as on the conditions or potential sanctioning of the finance system. It is found that in situations in which there is no original fiscal discipline and the authorities have the possibility of financing with debt of relatively low cost, fixed regimes do not purvey per se greater fiscal discipline than the flexible ones. On the contrary, flexible ones generate more discipline. In contexts with strong financing restrictions, the discipline’s effects of both regimes are not substantially different. While in situations with abundance of capitals but where they are highly integrated, they are volatile and possibly subject to contagion effect. The same functioning of the international finance system can, through their potential sanction, achieve greater discipline in economies with fixed regimes that wish to stay as such.exchange rate regimes; expenditure; revenues; deficits; international finance system; panel data; internal instruments; GMM

Structuring Liminality: Theorizing the Creation and Maintenance of the Cuban Exile Identity

In this article, we examine the exilic experience of the Cuban-American community in South Florida through the dual concepts of structure and liminality. We postulate that in the case of this exilic diaspora, specific structures arose to render liminality a persistent element of the Cuban-American identity. The liminal, rather than being a temporal transitory stage, becomes an integral part of the group identity. This paper theorizes and recasts the Cuban-American exile experience in Miami as explicable not only as the story of successful economic and political incorporation, although the literature certainly emphasizes this interpretation, but one consisting of permanent liminality institutionalized by structural components of the exiled diaspora. We argue that the story of exemplary incorporation so prevalent in the academic literature is a result of structured liminality. We apply Turner\u27s conceptualization to the creation and maintenance of the Cuban-American Exile Identity (Grenier and Perez, 2003). While testing the theoretical postulates is beyond the scope of this article, we interpret previous research through our new theoretical lens

Abstract Ces\`aro spaces: Integral representations

The Ces\`aro function spaces $Ces_p=[C,L^p]$, $1\le p\le\infty$, have received renewed attention in recent years. Many properties of $[C,L^p]$ are known. Less is known about $[C,X]$ when the Ces\`aro operator takes its values in a rearrangement invariant (r.i.) space $X$ other than $L^p$. In this paper we study the spaces $[C,X]$ via the methods of vector measures and vector integration. These techniques allow us to identify the absolutely continuous part of $[C,X]$ and the Fatou completion of $[C,X]$; to show that $[C,X]$ is never reflexive and never r.i.; to identify when $[C,X]$ is weakly sequentially complete, when it is isomorphic to an AL-space, and when it has the Dunford-Pettis property. The same techniques are used to analyze the operator $C:[C,X]\to X$; it is never compact but, it can be completely continuous.Comment: 21 page

Inequality in Latin America : determinants and consequences

Latin America is together with Sub-Saharan Africa the most unequal region of the world. This paper documents recent inequality trends in the Latin American region, going beyond traditional measures of income inequality. The paper also reviews some of the explanations that have been put forward to understand the current situation, and discusses why reducing income inequality should be an important policy priority. In particular, the authors discuss channels through which inequality can affect growth and output volatility. On the whole, the analysis suggests a two-pronged approach to reduce inequality in the region that combines policies aimed at improving the distribution of assets (especially education) with elements aimed at improving the capacity of the state to redistribute income through taxes and transfers.Inequality,Rural Poverty Reduction,Economic Conditions and Volatility,Achieving Shared Growth,Poverty Impact Evaluation

Network analysis of exchange data: Interdependence drives crisis contagion

In this paper we detect the linear and nonlinear co-movements presented on the real exchange rate in a group of 28 developed and developing countries that have suffered currency and financial crises during 15 years. We have used the matrix of Pearson correlation and Phase Synchronous (PS) coefficients and an appropriate metric distance between pairs of countries in order to construct a topology and hierarchies by using the Minimum Spanning Tree (MST). In addition, we have calculated the MST cost and global correlation coefficients to observe the co-movements dynamics along the time sample. By comparing Pearson and phase synchronous information we address a new methodology that can uncover meaningful information on the contagion economic issue and, more generally, in the debate around interdependence and/or contagion among financial time series. Our results suggest some evidence of contagion in the Asian currency crises but this crisis contagion is due to previous and stable interdependence.econophysics, linear co-movements, phase synchronous co-movements, MST, interdependence and contagion