Monetary Policy Rules for Financially Vulnerable EconomieEd

One distinguishable characteristic of emerging economies is that they are not financially robust. These economies are incapable to smooth out large external shocks as sudden capital outflows imply large and abrupt swings in the real exchange rate. Using a small open economy model this paper examines alternative monetary policy rules for economies with different degrees of liability dollarization. The paper answers the question of how efficient is to use inflation targeting under high liability dollarization. Our findings suggest that it might be optimal to follow a non-linear policy rule that defends the real exchange rate in a financially vulnerable economy.

Regional financial development and firm growth in Peru

This paper documents the relationship between regional financial development and firm growth in the Peruvian manufacturing sector. In order to control for mutual causality between credit availability and firm growth, industry differences in financial dependence on external funds are exploited. The 1994 and 2008 rounds of the National Economic Census are used, permitting analysis at the firm level as well as the activity level. Results suggest a significant and positive effect of financial deepening on surviving firms` growth. However, this effect is smaller for micro enterprises, suggesting that the cost of external funding decreases with financial development mainly for large firms. The conclusions remain unchanged when entering and exiting firms are included. The paper further finds that credit expansion have encouraged not only firm growth but also firm entry. The results are robust using an alternative measure of financial dependence.

The global crisis and the Peruvian labor market: impact and policy options

After almost 20 years of prudent macro policies, Peru seems in better shape than before to withstand the effects of a financial crisis. Progress, however, has left some policy areas unscathed and the labor market is one of them. In this paper we analyze the potential effects of the crisis on labor market outcomes, and discuss policy options to address short run and structural considerations. We review stylized facts from this and previous crisis to account for potential transmission mechanisms, review policy options and results from past and existing labor market interventions, and build a DSGE model to provide further insight regarding labor market outcomes and the effects of transitory and permanent policy measures. On the countercyclical front, our analysis reveals that the main risk that the policymaker should aim to mitigate is a surge in informality and underemployment. For this, job protection alternatives (as temporary payroll tax holidays already implemented) have to be accompanied by a strengthened and better focalized reemployment service, especially if the shock transpires into the nontradable sector. On the more structural side, policy should aim at the prime drivers of informality in our country: low productivity and high formal labor costs. For the latter, progressive access to labor benefits for small firms (already introduced via a special labor regime) could be complemented by introducing different minimum wage levels according to firm size and a generalized reduction in firing costs. Low productivity issues, on the other hand, can be addressed by strengthening and integrating existing training programs and information networks which have already proven successful in terms of formal job creation. Simulations reveal that permanent non-wage cost reductions (like those introduced via the special labor regime) can increase formal employment and formal GDP participation by 2 percentage points. Structural policy interventions also exhibit a large countercyclical potential due to their permanent nature. This implies that we should not wait for the crisis to be over to start their implementation.Global crisis; labor markets; Peru

Assessing Financial Vulnerability in Partially Dollarized Economies

The reduction of macroeconomic vulnerability in emerging markets is at the core of the research agenda. In this context, liability dollarization plays a vital role and its implications have been addressed in the literature via a “financial accelerator” mechanism. After allowing for different degrees of liability dollarization in a general equilibrium framework, this analysis uncovers some important implications about the role of the asset price channel and central bank’s commitment with the exchange rate, when assessing financial vulnerability. If we asses vulnerability in terms of the evolution of investment, we claim that, in absence of an asset price channel, departures from a pure float will not only help mitigate vulnerability but will also be welfare improving. On the other hand, and with an active asset price channel, a tighter exchange rate policy will only have marginal effects on welfare and vulnerability when compared to that associated to a reduction in liability dollarization.Liability dollarization, financial vulnerability, fear of floating, monetary policy

Museum of dental injuries

Fil: Tello, Olga. Universidad Nacional de Cuyo. Facultad de OdontologíaFil: Villa, Raúl Eduardo. Universidad Nacional de Cuyo. Facultad de OdontologíaFil: Moron, Carina. Universidad Nacional de Cuyo. Facultad de OdontologíaFil: Moron, Viviana. Universidad Nacional de Cuyo. Facultad de Odontologí

Os Remuneration limits in lawful accumulation of offices and public functions and the transformations of Administrative law: analysis of the Brazilian Supreme Court cases

A função pública submetida ao regime estatutário não foi preservada das recentes transformações do Direito Administrativo. Não somente o modelo jurídico constitucional em matéria de servidor público estatutário passou em período recente por alterações no texto constitucional, como também a interpretação dos dispositivos constitucionais, conferida pelo Supremo Tribunal Federal tem evoluído, coincidindo com o novo paradigma pós-positivista do Direito Administrativo. O presente artigo analisa o recente julgado do STF em sede de repercussão geral que afastou a observância do teto remuneratório quanto à soma das remunerações do agente público nos casos constitucionalmente autorizados de acumulação de cargos e funções para fins de incidência do artigo 37, inciso XI da Constituição federal. Analisando os votos proferidos, verifica-se que aspectos importantes foram debatidos a respeito das transformações do Direito Administrativo, com destaque para o novo paradigma pós-positivista que consiste na concretização dos direitos fundamentais. Por fim, no que diz respeito à metodologia utilizada, recorre-se ao modelo analítico-dedutivo, tendo como parâmetro o Direito Constitucional aplicado.The public function submitted to the statutory regime was not preserved from the recent transformations of Administrative Law. Not only has the constitutional legal model for public statutory servants passed in recent times due to changes in the constitutional text, but also the interpretation of constitutional provisions conferred by the Federal Supreme Court has evolved, coinciding with the new post-positivist paradigm of Administrative Law. This article analyzes the recent decision of the Federal Supreme Court with a general repercussion that removed the observance of the remuneration ceiling regarding the sum of the remuneration of the public agent, in the constitutionally authorized cases of accumulation of positions and functions for purposes of incidence of article 37, subsection XI of the Federal Constitution. Analyzing the votes, it is verified that important aspects were debated about the transformations of Administrative Law, with emphasis on the new post-positivist paradigm that consists in the realization of fundamental rights. Finally, with regard to the methodology used, the analytic-deductive model is used, having as parameter the Constitutional Law concretized

Equidade, justiça distributiva e a repartição dos royalties do pré-sal: uma releitura de J. Rawls

Este artigo revisita a teoria da justiça de John Rawls para abordar o debate judicial sobre as regras de distribuição dos royalties e participações especiais devidos pela exploração de petróleo no Pré-Sal (pela Lei federal n.º 12.734/2012), enfatizando a relevância do critério da equidade para a análise desse caso que se encontra sob julgamento no Supremo Tribunal Federal. A partir do exame dos argumentos apresentados até o momento pelos Ministros do STF na Ação Direta de Inconstitucionalidade 4.917, avalia-se o quanto se aproximam ou se distanciam das premissas básicas fixadas por Rawls para uma justa distribuição em um esquema cooperativo. Embora a teoria da justiça de Rawls tenha sido pensada para uma sociedade de pessoas, a hipótese é que, na sua essência, poderia ser válida também para a análise de um esquema cooperativo como a federação, em que os entes federativos estaduais seriam equivalentes às pessoas. São pensados desde logo três modelos distributivos possíveis: (I) um em que os Estados da federação que são potencialmente afetados (em alguma medida) pela exploração devem receber com exclusividade e de forma igual entre si os royalties; (II) um em que os Estados que são potencialmente mais afetados pela exploração devem receber uma parte maior dos royalties, mas os demais Estados também devem receber uma parte, ainda que menor, pois fazem todos parte de uma federação; e (III) um em que os Estados todos, independente do quanto sejam, ou não, potencialmente afetados, devem receber partes iguais dos ganhos da exploração do Pré-Sal, de vez que os ganhos (receitas) da federação devem aproveitar a todos. Interessado em saber quanto cabe a quem, e como a noção de equidade pode oferecer a resposta mais apropriada, este artigo, a partir do estudo de caso, utiliza-se de um método quali-quantitativo

The global crisis and the Peruvian labor market: impact and policy options

After almost 20 years of prudent macro policies, Peru seems in better shape than before to withstand the effects of a financial crisis. Progress, however, has left some policy areas unscathed and the labor market is one of them. In this paper we analyze the potential effects of the crisis on labor market outcomes, and discuss policy options to address short run and structural considerations. We review stylized facts from this and previous crisis to account for potential transmission mechanisms, review policy options and results from past and existing labor market interventions, and build a DSGE model to provide further insight regarding labor market outcomes and the effects of transitory and permanent policy measures. On the countercyclical front, our analysis reveals that the main risk that the policymaker should aim to mitigate is a surge in informality and underemployment. For this, job protection alternatives (as temporary payroll tax holidays already implemented) have to be accompanied by a strengthened and better focalized reemployment service, especially if the shock transpires into the nontradable sector. On the more structural side, policy should aim at the prime drivers of informality in our country: low productivity and high formal labor costs. For the latter, progressive access to labor benefits for small firms (already introduced via a special labor regime) could be complemented by introducing different minimum wage levels according to firm size and a generalized reduction in firing costs. Low productivity issues, on the other hand, can be addressed by strengthening and integrating existing training programs and information networks which have already proven successful in terms of formal job creation. Simulations reveal that permanent non-wage cost reductions (like those introduced via the special labor regime) can increase formal employment and formal GDP participation by 2 percentage points. Structural policy interventions also exhibit a large countercyclical potential due to their permanent nature. This implies that we should not wait for the crisis to be over to start their implementation

A SOBREPOSIÇÃO DE MUNICÍPIO EM TERRA INDÍGENA E A PROTEÇÃO FEDERATIVO-CONSTITUCIONAL

O presente artigo objetiva analisar o seguinte problema: se a criação de um Município dentro de terras indígenas já demarcadas e homologadas contém elementos que possam configurar eventual conflito federativo, considerando que compete constitucionalmente aos Estados a criação dos Municípios e à União a demarcação de terras indígenas. Para tanto, parte-se da análise da Ação Civil Originária n.º499 em que se discute a criação do Município de Pacaraima na Terra Indígena São Marcos no Estado de Roraima. Ao problema de tese formulado, levanta-se a hipótese, ao final confirmada, de que existem fundamentos constitucionais para concluir pela ocorrência de conflito federativo e atrair a competência originária do Supremo Tribunal Federal, embora o próprio Supremo tenha decidido pela inexistência de conflito entre a União e o Estado apto a provocar abalo ao pacto federativo na referida matéria. No tocante às questões metodológicas, destacam-se o estudo de caso, o uso da vertente teórica jurídico-dogmática e do raciocínio dedutivo com a utilização de literatura direta ou transversal à temática, bem como de dados legislativos e jurisprudência nacional