Authoritarian governments and exchange rate policy in Latin American countries

Claudio Lucinda and Paulo Arvate

Brazilian Journal of Political Economy, 2006, vol. 26, issue 3, 323-344

Abstract: Our aim on this paper is to identify the exchange rate policies used by Authoritarian governments in Latin America during the seventies and eighties. The literature shows that the focus of the exchange rate policy was on inflation control, which was not consistent with the evidence. We show on this paper that these governments aimed at a undervalued currency because of the behavior of the external balance of the countries. JEL Classification: N16, F41, H19.

Keywords: exchange rates; Latin America; political institutions (search for similar items in EconPapers)
Date: 2006
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