- Figures (and map)
- Shifting Paradigms in Latin America's Economic Development
- Institutions and the Historical Roots of Latin American Divergence
- Political Institutions, Policymaking, and Economic Policy in Latin America
- The Washington Consensus: Assessing A “damaged Brand”
- From Old to New Developmentalism in Latin America
- Environmental Sustainability
- Taming Capital Account Shocks: Managing Booms and Busts
- Exchange Rate Regimes in Latin America
- Monetary Policy in Latin America: Performance Under Crisis and the Challenges of Exuberance
- Domestic Financial Development in Latin America
- Fiscal Policy in Latin America
- Fiscal Legitimacy, Inequalities, and Democratic Consolidation in Latin America
- Latin America in the World Trade System
- Regional Integration
- The Effects of Trade Liberalization on Growth, Employment, and Wages
- The Recent Commodity Price Boom and Latin American Growth: More than New Bottles for an Old Wine?
- Curse or Blessing? Natural Resources and Human Development
- Foreign Direct Investment in Latin America
- China and the Future of Latin American Economic Development
- Latin America in the Recent Wave of International Migration
- Structural Transformation and Economic Growth in Latin America
- Learning, Technological Capabilities, and Structural Dynamics
- Why Has Productivity Growth Stagnated in Most Latin American Countries Since the Neo-Liberal Reforms?
- Agricultural and Rural Development
- An Energy Panorama of Latin America
- Infrastructure in Latin America
- The Rise and Fall of Income Inequality in Latin America
- Multidimensional Poverty in Latin America: Concept, Measurement, and Policy
- Economic Insecurity and Development in Latin America and the Caribbean
- Employment: The Dominance of the Informal Economy
- Latin American Labor Reforms: Evaluating Risk and Security
- Social Protection in Latin America: Achievements and Limitations
- Social Security Reforms in Latin America
Abstract and Keywords
This chapter looks at how Latin American governments chose their exchange rate regimes given specific domestic and external conditions. The second section provides a historical overview of the main trends of exchange rate arrangements in Latin America, focusing on Argentina, Brazil, Chile, Colombia, Mexico, and Peru. This narrative goes from the post world war period up until the unfolding of the subprime crisis in the US and its effects on Latin America. The third section closes with the main conclusions derived from the analysis. The discussion follows the Latin American convention defining the exchange rate as the domestic price of a foreign currency (i.e. units of domestic currency per unit of US dollar). A rise in the nominal exchange rate implies a nominal depreciation and a fall an appreciation. The same logic applies for the real exchange rate.
Roberto Frenkel, Principal Reasearch Associate at CEDES (Center for the Study of State and Society), Buenos Aires, and Professor at the University of Buenos Aires.
Martín Rapetti is Adjunt Researcher at Centro de Estudios de Estado y Sociedad (CEDES), Buenos Aires.
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