IIEP 24411
INSTITUTO INTERDISCIPLINARIO DE ECONOMIA POLITICA DE BUENOS AIRES
Unidad Ejecutora - UE
congresos y reuniones científicas
Título:
CONTRACTIONARY DEVALUATIONS IN LATIN AMERICA DURING THE 2000S
Autor/es:
EMILIANO LIBMAN; MARTÍN MONTANÉ; GUIDO ZACK
Lugar:
La Plata
Reunión:
Congreso; LIII Reunión Anual de la AAEP; 2018
Institución organizadora:
Asociación Argentina de Economía Política (AAEP)
Resumen:
This paper explores the effects of currency depreciations on output for the main Latin-American countries that are currently using Inflation Targeting. We build a simple model that shows that contractionary effects from devaluations may lead to instability when monetary policy is conducted using a standard Taylor Rule. We show that a policy that keeps the interest rate fixed is sometimes preferable. Finally, we explore a family of VAR models for Brazil, Chile, Colombia, Mexico, and Peru, for the last decades, and we find that short-run contractionary effects from devaluations are present.
