Monetary Policy Challenges in Latin America

Edited by Fernando Toledo, Professor of International Monetary Economics, Faculty of Economic Sciences, University of La Plata, Argentina and Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy and Founding Editor Emeritus, Review of Keynesian Economics

Contents:

Introduction to Monetary Policy Challenges in Latin America xxi
Fernando Toledo and Louis-Philippe Rochon

PART I ALTERNATIVE VIEWS ABOUT CENTRAL
BANKS AND MONETARY POLICY IN LACS
1 Assessing the new “integrated policy framework”:
a counterfactual analysis of the case of Argentina 2
Sebastián Valdecantos
2 Macroeconomic policy under a managed floating
exchange rate regime: a critical appraisal of the
international currency hierarchy literature 16
Simone Deos and Enzo Gerioni

PART II MONETARY POLICY TRANSMISSION
CHANNELS IN LACS
3 Inflation targeting in open economies: the contradictions
of determinacy and stability 34
Esteban Pérez Caldentey and Matías Vernengo
4 Limitations of monetary policies in open developing
economies: external capital inflows and sterilisation policies 59
Noemí Levy Orlik
5 Global financial cycle and monetary policy rules:
a neo-Kaleckian model for emerging markets and
developing economies 78
Gabriel Michelena and Fernando Toledo

PART III MONETARY POLICIES AND EXCHANGE RATES IN LACS
6 Exchange rate management in Latin America: towards the
making of a policy target exchange rate 97
Daniel Pérez-Ruiz, Gary Dymski, and Annina Kaltenbrunner
7 Real exchange rates, growth, and inflation targeting 117
Nelson Barbosa Filho
8 When are devaluations more contractionary? A quantile
VAR estimation for Argentina 132
Gabriel Montes-Rojas and Nicolás Bertholet

PART IV MONETARY POLICIES, INTERNATIONAL
RESERVES, AND SUSTAINABLE FINANCE IN LACS
9 Latin American Reserve Fund: Latin America’s
alternative to the IMF? 150
William N. Kring
10 Climate change, monetary policy, and green finance in
Latin America: the open economy dimension 168
Pablo G. Bortz and Nicole Toftum

PART V MONETARY POLICIES, CENTRAL BANKS,
INCOME INEQUALITY, AND FISCAL POLICIES IN LACS
11 Fiscal responses to income inequality surges. A panel
estimation for Emerging Market and Developing
Economies (EMDEs) 185
Jorge Carrera, Pablo de la Vega, and Fernando Toledo
12 Fiscal and monetary policy challenges after COVID-19:
The Argentinean case 206
Damián Pierri
13 International reserves, repurchase agreements, and the
Brazilian monetary policy 220
Sylvio Antonio Kappes
14 External debt and economic growth in Latin America and
the Caribbean 230
Alfredo Schclarek Curutchet

Index 256