Monetary policy in Latin America: Where are we going?

Christian Daude 10 December 2012

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Inflation targeting has served countries in Latin America well . They have achieved macroeconomic stability by reducing inflation and the pass-through of external shocks such as oil price and exchange rate fluctuations (cf. Mishkin and Schmidt-Hebbel 2007).

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Topics:  Macroeconomic policy Monetary policy

Tags:  inflation targeting, Latin America, Central Banks, foreign exchange, Brazil, Chile, Mexico, Colombia, Peru

Capital controls: A meta-analysis approach

Carmen M Reinhart, Kenneth Rogoff, Nicolas Magud 24 March 2011

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Academics, financial-market participants, and policymakers have once again demonstrated an interest in capital controls. In the present context, the discussion has largely focused on emerging markets’ measures to curb capital inflows and/or to skew their composition away from more volatile types of flows – including the carry trade and portfolio flows. Similar discussions (with far less approval from official circles) took place in the early 1990s, as many emerging markets faced a similar surge in capital inflows.

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Topics:  International finance Macroeconomic policy

Tags:  capital controls, Chile, exchange-rate policy, Malaysia

Are capital controls effective?

Eduardo Levy Yeyati 20 January 2011

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“Not only are they ineffective but, in addition, they raise domestic interest rates.” This type of internally inconsistent commentary is not unusual when discussing capital controls – a subject marked with strong beliefs and weak data. Now that the G20 has sanctioned capital controls in Seoul under the umbrella of macro-prudential policies, it is a good time to revisit the subject of controls in a dispassionate way (G20 2010).1

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Topics:  International finance

Tags:  US, protectionism, capital controls, Chile, Argentina

Incentive effects of unemployment insurance savings accounts: Evidence from Chile

Gonzalo Reyes, Jan van Ours, Milan Vodopivec 09 February 2010

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Unemployment insurance offers financial compensation to workers for income loss due to unemployment – providing they satisfy certain requirements. While such programmes usually provide solid protection against the hardship of job loss, the evidence shows that this protection is typically produced at a cost of increased disincentives to work. The unemployed search less intensely for a job than they would have in the absence of benefits and their reservation wage is higher, making them less likely to take a given job offer (Holmlund 1998 and Vodopivec 2004).

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Topics:  Labour markets

Tags:  Unemployment insurance, Chile, savings accounts

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