EconPapers    
Economics at your fingertips  
 

Desafíos del Manejo de la Liquidez y de los Activos Internacionales en Latinoamérica

Joshua Aizenman () and Daniel Riera-Crichton ()

Journal Economía Chilena (The Chilean Economy), 2015, vol. 18, issue 2, 62-96

Abstract: We analyze the degree to which the growing importance of sovereign wealth funds [SWFs], and the diffusion of inflation targeting and augmented Taylor rules have impacted the post crisis adjustment of Latin American countries to the challenges associated with terms of trade and financial shocks. We confirm that active international reserves management reduces the effects of transitory Commodity Terms of Trade (CTOT) shocks to the real effective exchange rate [REER] and the real GDP in LATAM economies. These buffer effects work more against the risks of real appreciation than against depreciations, under relatively high levels of external debt and in economies that are less open to trade. Fixed exchange regimes act as a substitute policy to reserve accumulation. In contrast to reserves, SWFs buffer the REER from CTOT shocks with fixed exchange rate regimes and in relatively closed economies

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://si2.bcentral.cl/public/pdf/revista-economi ... n2ago2015pp62-96.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchec:v:18:y:2015:i:2:p:62-96

Access Statistics for this article

Journal Economía Chilena (The Chilean Economy) is currently edited by Álvaro Aguirre, Sofía Bauducco and Andrés Fernández

More articles in Journal Economía Chilena (The Chilean Economy) from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Claudio Sepulveda ( this e-mail address is bad, please contact ).

 
Page updated 2022-01-13
Handle: RePEc:chb:bcchec:v:18:y:2015:i:2:p:62-96