SHORT RUN SAVINGS FLUCTUATIONS AND EXPORT SHOCKS.THEORY AND EVIDENCE FOR LATIN-AMERICA

Juan Echeverry

No 3498, Borradores de Economia from Banco de la Republica

Abstract: A basic theoretical of a small open economy within the framework of intertemporal maximization is used to analyze the effects of nominal export shocks. The model helps in explaining the close relationship that is found between export shocks and short run fluctuations of domestic savings in the major Latin American economies. The savings/ GDP ratio moves fairly closely with exports as transitory. An explanation is proposed for Colombia's fall in the savings rate during the 1990s, and the puzzling cases of Mexico and Peru during the 1980s. Exports volatility and prolonged overvaluation of the exchange rate are associated with savings rate volatility.

Pages: 44
Date: 1996-03-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.banrep.gov.co/docum/ftp/borra048.pdf

Related works:
Working Paper: Short Run Savings Fluctuations and Export Shocks. Theory and Evidence for Latin-America (1996)
Working Paper: Short run savings fluctuations and export shocks theory and evidence for Latin America (1996)
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:col:000094:003498

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica
Bibliographic data for series maintained by Clorith Angelica Bahos Olivera ().