How Optimal are the Extremes?: Latin American Exchange Rate Policies During the Asian Crisis

Ricardo Ffrench-Davis and Guillermo Larraín

No DP2002-18, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: During the Asian crisis, intermediate exchange rate regimes vanished. It has been argued that those regimes were no longer useful and only the extremes remained valid. The paper analyses three foreign exchange regimes: Argentina (pegged), Chile (band) and Mexico (float). The Argentinean currency board delivered low financial volatility while it was credible, but even then it displayed high real volatility. Mexican float performed well in periods of instability isolating the real sector. The Chilean band delivered a mixed outcome as compared to Argentina and Mexico.

Keywords: Foreign exchange; Macroeconomics; Monetary policy (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (11)

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Related works:
Book: How optimal are the extremes?: Latin American exchange rate policies during the Asian crisis (2003)
Working Paper: How optimal are the extremes?: Latin American exchange rate policies during the Asian crisis (2003)
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