Macroeconomic Policies and Performance in Latin America

Posted: 4 Oct 2017

See all articles by César Calderón

César Calderón

World Bank

Klaus Schmidt-Hebbel

Pontificia Universidad Católica de Chile

Date Written: 2003

Abstract

This paper provides new evidence on macroeconomic policies and results in Latin America and the Caribbean. Results are: (i) credibility allows adoption of counter-cyclical macroeconomic policies; (ii) accuracy in meeting inflation targets depends on central bank independence and country risk; (iii) intermediate exchange rate (ER) regimes have become less persistent; (iv) ER regimes matter for inflation and growth; (v) real ER trends are not explained by productivity growth and supply reforms do not resolve real ER misalignments; (vi) financial integration has increased significantly; (vii) foreign shocks are a major growth determinant; and (viii) composition of foreign capital inflows matters for growth.

Keywords: Latin America, Fiscal and monetary policies, Exchange rate regimes, Growth

JEL Classification: F21, F33

Suggested Citation

Calderon, Cesar A. and Schmidt-Hebbel, Klaus, Macroeconomic Policies and Performance in Latin America (2003). Journal of International Money and Finance, Vol. 22, No. 7, 2003, Available at SSRN: https://ssrn.com/abstract=3041354

Cesar A. Calderon

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States
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HOME PAGE: http://www.worldbank.org/laceconomist

Klaus Schmidt-Hebbel (Contact Author)

Pontificia Universidad Católica de Chile ( email )

Av. Vicuna Mackenna 4860
Santiago
Chile

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