A regional reserve fund for Latin America

Daniel Titelman Kardonsky, Cecilia Vera, Pablo Carvallo and Esteban Perez Caldentey

Revista CEPAL, 2014

Abstract: This paper analyses the viability, implications and challenges of expanding the Latin American Reserve Fund (FLAR) to Argentina, Brazil, Chile, Mexico and Paraguay. A regional reserve fund should be viewed as one of a broad range of mechanisms offered by the international financial architecture to address balance-of-payment difficulties. A fund with resources of between US$ 9 and US$ 10 billion at its disposal would be able to cover the potential funding needs of its members in the most likely scenarios, without necessarily becoming the lender of last resort for all its members. In more extreme scenarios, the fund should be able to "broaden its shoulders" by drawing on other components of the international financial architecture. Fund governance would present the main challenge resulting from an increase in the number of members.

Date: 2014-04
Note: Includes bibliography.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://repositorio.cepal.org/handle/11362/37018

Related works:
Working Paper: A regional reserve fund for Latin America (2014)
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:ecr:col070:37018

Access Statistics for this article

More articles in Revista CEPAL from Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL) Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteca CEPAL ().