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Copyright of Lecturas de Economia is the property of Universidad de Antioquia, Facultad de Ciencias Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Lecturas de Economia is the property of Universidad de Antioquia, Facultad de Ciencias Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Regional financial cooperation (rfc) aims to secure the liquidity of central banks and build and maintain regional risk to be relatively homogenous. One aspect of rfc consists of the fiscal requirements to guarantee price stability and homogeneity among member countries. The regional accounts unit requires a stabilization fund and a debt bailout fund in order to ensure the spreads. This paper provides an overview of lessons for Latin America based on how rfc has worked in Europe, both before and throughout the euro crisis. [ABSTRACT FROM AUTHOR]

This paper analyzes the role of fundamentals and the net positions of speculators in determining the Brazilian exchange rate from April 2002 to August 2012. Based on a cointegrated svar model, we found empirical evidence to support our hypothesis that the microeconomic approach (Evans and Lyons, 2002) and the monetary model (Bilson, 1978) to determine the exchange rate are consistent with one another. Unlike in other empirical studies, our analysis demonstrates that the net positions of speculators and economic fundamentals constitute two channels (one liquidity-related, the other information-related) that can contribute to explaining the dynamics of the Brazilian exchange rate in the short and long term. [ABSTRACT FROM AUTHOR]

Recent literature has empirically demonstrated that the real exchange rate is essential to explaining the economic evolution of developing countries. It has been empirically proven that the anti-inflation exchange rate policy implemented systematically in Mexico has constituted a major restriction on the country's economic growth, a restriction that has persisted throughout this entire time period, even through different monetary and exchange rate regimes. This paper estimates an svar (1950-2014) that shows how the continuous appreciation of the real exchange rate has curbed Mexico's economic growth capacity and had an impact on other macroeconomic balances. This alone could be considered a highly potent structural macroeconomic reform. [ABSTRACT FROM AUTHOR]

This text analyzes conditions for stability in a dynamic simulation model of Banxico's sterilized interventions in the time period 1976-2013. The analysis reveals that two of the most striking vulnerabilities of this strategy were: a) the potential for the external reference interest rate for Mexico to rise above the domestic rate and b) the risk that oil revenue in the country would fall. In light of this change, Banxico is faced with the policy dilemma of choosing between tightening monetary restrictions to increase the domestic interest rate above the external rate or doing the opposite, because both options could counterbalance these vulnerabilities. The former would come at the cost of shifting the burden of the losses from the adjustment to non-financial sectors in the country, while the second would distribute these losses progressively. [ABSTRACT FROM AUTHOR]

This work studies the origin of macroeconomic imbalances in the Spanish economy in the context of European integration, analyzing some of the major hypotheses found in economic literature as causes of imbalances in current accounts, disparities in competitiveness among member states and the fiscal position of the Spanish government. We emphasize the breaking point of adopting a single currency and how this has affected interest rates, economic growth forecasts and the strong and continuous inflow of capital from countries in the Eurozone core, contributing to the real-estate bubble and leveraging the private sector. [ABSTRACT FROM AUTHOR]

This text provides a critical analysis of the experiences of Brazil, Chile and Mexico, countries that have adopted the inflationary targeting monetary policy espoused by New Consensus Macroeconomics ( NCM). Using cointegration and error correction models, as well as a discussion of the major facts of the case, we contrast the NCM with the empirical evidence available. One essential feature of its modus operandi in these economies lies in the fact that inflation control is crucially dependent on the appreciation of the exchange rate. The essential hypothesis of the NCM cannot be accepted. Similarly, its monetary policy, in which inflation depends on the product gap, contradicts the export-led growth model adopted by these countries and is a recessive method of stabilizing prices. [ABSTRACT FROM AUTHOR]

Copyright of Revista Criterio Libre is the property of Revista Criterio Libre and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates the effects of currency devaluation on the export dynamics of developing countries. Unlike conventional theory, this work demonstrates that the negative effect on the balance sheets of exportation companies, due to the elevated dollarization of liabilities, cancels out any possible gains in competitiveness. Based on the results of empirical research, this text argues that establishing a competitive and stable real exchange rate by making the nominal exchange rate more flexible would not be advisable for these countries. Finally, this work proposes an alternative strategy to increase productivity, in order to obtain a more favorable position in the global economy. [ABSTRACT FROM AUTHOR]

We analyze the relevance of the conventional macroeconomic model supporting the inflation target program and examine its non-viability when interest rate parity is rejected, making it possible to apply sterilized intervention in the foreign exchange market as a monetary policy instrument. In this study, we want to use econometric methods to evaluate whether three Latin American countries (Brazil, Chile and Mexico) -which refer to themselves as having floating currencies, as their central banks adopt inflation target programs, and where a magnified pass-through effect is observed from the exchange rate to inflation -effectively use sterilized intervention in the foreign exchange market to regulate their exchange rates. [ABSTRACT FROM AUTHOR]

Copyright of Revista Virtual Universidad Católica del Norte is the property of Revista Virtual Universidad Catolica del Norte and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)