Capital Flows and Long-Term Equilibrium Real Exchange Rates in Chile
Author: Ibrahim Elbadawi
Publisher: World Bank Publications
Published: 1994
Total Pages: 40
ISBN-13:
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Managing Capital Flows
Author: Mr.Jaime Cardoso
Publisher: International Monetary Fund
Published: 1998-12-01
Total Pages: 53
ISBN-13: 145185823X
DOWNLOAD EBOOK →As a result of the Asian crisis, methods of coping with volatile international capital markets have received considerable attention from observers and policymakers. It has been argued that the imposition by Chile of a nonremunerated reserve requirement on external borrowing played a useful role in the smooth liberalization of its capital account by allowing Chile to deal effectively with short-term capital inflows and thus to reduce its vulnerability to external shocks, and that such measures should be adopted by other countries. In light of this, this paper reviews Chile’s experience in managing capital flows and draws lessons for policymakers.
Competitiveness and the Evolution of the Real Exchange Rate in Chile
Author: Ms.Martine Guerguil
Publisher: International Monetary Fund
Published: 1998-04-01
Total Pages: 28
ISBN-13: 1451847831
DOWNLOAD EBOOK →This paper reviews the evolution of certain price and nonprice competitiveness indicators in Chile and concludes that the pecuniary loss of competitiveness associated with the appreciation of the peso since the late 1980s has been broadly offset by productivity gains and adjustments in factor intensity, particularly in the manufacturing sector. However, there may be limited room for further advances from that point, which gives new prominence to certain policy issues such as structural reforms to increase productivity, a reassessment of the tax treatment of the mining sector, and a rebalancing of the macroeconomic policy mix to dampen speculative capital inflows.
A Review of Capital Account Restrictions in Chile in the 1990s
Author: Mr.Francisco Nadal De Simone
Publisher: International Monetary Fund
Published: 1999-04-01
Total Pages: 56
ISBN-13: 1451847238
DOWNLOAD EBOOK →This paper examines the Chilean experience with capital controls and reviews studies on controls on capital inflows. Controls on Chile’s inflows had only a temporary impact in reducing specific inflows because they were affected by avoidance. There is some evidence that controls increased interest rates and altered the composition of capital inflows. The studies, however, contain important methodological problems in measuring flows and significant econometric weaknesses, which cast doubt on the robustness of the estimates. No study has assessed the political economy of the controls. It seems premature to view the Chilean experience as supportive of controls on capital inflows.
Capital Inflows, the Current Account, and the Real Exchange Rate
Capital Controls and Capital Flows in Emerging Economies
Author: Sebastian Edwards
Publisher: University of Chicago Press
Published: 2009-02-15
Total Pages: 699
ISBN-13: 0226184994
DOWNLOAD EBOOK →Some scholars argue that the free movement of capital across borders enhances welfare; others claim it represents a clear peril, especially for emerging nations. In Capital Controls and Capital Flows in Emerging Economies, an esteemed group of contributors examines both the advantages and the pitfalls of restricting capital mobility in these emerging nations. In the aftermath of the East Asian currency crises of 1997, the authors consider mechanisms that eight countries have used to control capital inflows and evaluate their effectiveness in altering the maturity of the resulting external debt and reducing macroeconomic vulnerability. This volume is essential reading for all those interested in emerging nations and the costs and benefits of restricting international capital flows.
Chile
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 1998-04-15
Total Pages: 172
ISBN-13:
DOWNLOAD EBOOK →This Selected Issues paper examines economic developments in Chile during 1995–97. Average output growth exceeded 7 percent in 1995–97 and twelve-month inflation fell from 9 percent at end-1994 to 6 percent at end-1997. Economic management during this period was complicated by a sharp swing in export prices, and—up to the last quarter of 1997—strong and rising capital inflows. After a surge in 1995, the price of copper declined by more than 20 percent in 1996, recovered in early 1997, and fell sharply later in the year.
Capital Account Liberalization and the Real Exchange Rate in Chile
Author: Guillermo R. LeFort-Varela
Publisher: INTERNATIONAL MONETARY FUND
Published: 2005-06-01
Total Pages: 36
ISBN-13: 9781451861518
DOWNLOAD EBOOK →After the failure of the early 1980s, a second attempt at capital account liberalization was gradually carried out in Chile during the 1990s, this time in parallel with increased exchange rate flexibility. Capital account regulations were applied to support the independent monetary policy committed to the inflation target, while the exchange rate was quasi-pegged within a band that targeted the real exchange rate (RER). Still, the policy framework directed at stabilizing the RER appears to have been of limited effectiveness, with the surges and sudden-stops in capital flows playing an important role in RER dynamics. Foreign exchange market intervention appears not to have affected the RER while reserve requirement appears to have exerted a depreciating effect. Government spending and import tariffs, appear to be significant tools to moderate the real appreciation thus providing one additional reason for adopting a countercyclical fiscal policy and accelerating trade openness
Capital Account Liberalization and the Real Exchange Rate in Chile
Author: Guillermo Raúl LeFort-Varela
Publisher:
Published: 2005
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOK →After the failure of the early 1980s, a second attempt at capital account liberalization was gradually carried out in Chile during the 1990s, this time in parallel with increased exchange rate flexibility. Capital account regulations were applied to support the independent monetary policy committed to the inflation target, while the exchange rate was quasi-pegged within a band that targeted the real exchange rate (RER). Still, the policy framework directed at stabilizing the RER appears to have been of limited effectiveness, with the surges and sudden-stops in capital flows playing an important role in RER dynamics. Foreign exchange market intervention appears not to have affected the RER while reserve requirement appears to have exerted a depreciating effect. Government spending and import tariffs, appear to be significant tools to moderate the real appreciation thus providing one additional reason for adopting a countercyclical fiscal policy and accelerating trade openness when a country is facing strong capital inflows.
Targeting the Real Exchange Rate
Author: Guillermo Calvo
Publisher: International Monetary Fund
Published: 1994-02
Total Pages: 58
ISBN-13:
DOWNLOAD EBOOK →This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained temporarily. This can be achieved by means of higher inflation and/or higher real interest rates, depending on the degree of capital mobility. Evidence for Brazil, Chile, and Colombia supports the model’s prediction that undervalued real exchange rates are associated with higher inflation.
