Convertibilidad, capitales volátiles y estabilización. El papel de las finanzas del gobierno

Mario Damill ()

Brazilian Journal of Political Economy, 1999, vol. 19, issue 1, 30-57

Abstract: This paper examines the potential effects of volatile international capital flowson a small, commercially and financially open economy under a currency board regime, asis currently the case in Argentine. ln the face of shocks, like those associated with changes inthe magnitude and direction of capital flows, the convertibility regime generates pro-cyclicalreactions, which pose important problems for the stabilization of real and financial variables.In particular, the paper focuses on the stabilizing role of decisions concerning public debtmanagement and, in general, the administration of the Treasury’s and Central Bank’s financial portfolios (assets and liabilities, including foreign exchange reserves). The paper briefly reviews the main analytical approaches to the public sector’s financial portfolio management and, within that framework, makes a stylized examination of the distinctive characteristics of the Argentine case. JEL Classification: F41; H63; E61.

Keywords: Public debt; capital flows; stabilization (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:19:y:1999:i:1:p:30-57:id:1044

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