Abstract

NUDELSMAN, Susana. Exchange Rate Regimes in Latin America. Ens. Econ. [online]. 2017, vol.27, n.51, pp.35-56. ISSN 0121-117X.  https://doi.org/10.15446/ede.v27n51.69114.

Although the end of the Bretton Woods agreements inaugurated the era of floating exchange rates, the world currently displays a variety of exchange arrangements. Extreme exchange rate alternatives are not a panacea. Managed floating regimes are a sensible economic policy tool. The exchange rate was a crucial element in the heterodox stabilization and total fixation programs implemented in Latin America in the 1980s and 1990s. Since the 2000s, the region has moved towards greater exchange rate flexibility. These economies experienced the dilemmas derived from the fear of floating and, later, from the fear of appreciation. Floating cum inflation targeting is in vogue, but countries also resort to exchange rate intervention. The appreciation of local currencies and the lack of exchange rate flexibility have been adverse factors for these economies.

JEL: B22, E42, F02, F43.

Keywords : exchange rates; international monetary arrangement; macroeconomics of open economies; economic impacts of globalization.

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