Public Policy Restricting Free Flow of Capital, Exchange Rate Control and Possible Effects on Cross-Border Insolvency: The Case of Latin American Countries

Author(s):  
Loly Aylú Gaitán-Guerrero ◽  
Charles Alberto Muller Sanchez
2008 ◽  
Vol 55 (3) ◽  
pp. 279-308
Author(s):  
Jean-Pierre Allegret ◽  
Alain Sand-Zantman

This paper assesses the monetary consequences of the Latin-American integration process. Over the period 1991-2007, we analyze a sample of five Latin-American countries focusing on the feasibility of a monetary union between L.A. economies. To this end, we study the issue of business cycle synchronization with the occurrence of common shocks. First, we assess the international disturbances influence on the domestic business cycles. Second, we analyze the impact of the adoption of different exchange rate regimes on the countries' responses to shocks. .


2018 ◽  
Vol 10 (1) ◽  
pp. 15-36
Author(s):  
Clara Luz Alvarez

Purpose – To assess the role of the judiciary in defining the Regulatory State and in regulating telecommunications in Mexico after almost 5 years of the creation of an independent regulator for telecommunications and broadcasting (Instituto Federal de Telecomunicaciones) with authority in antitrust matters. Methodology/approach/design – To identify the most relevant judicial decisions in telecommunications and antitrust matters, research upon the context in which they were adopted, analyze the content of the decisions and identify the impact of such judicial decisions in the construction of the Mexican Regulatory State, and in the law, in regulation/acts of the regulator. Findings – The main findings are that: (1) the Mexican Regulatory State is a reality now, even if it is in its beginnings; (2) Congress is receptive to Judiciary´s decisions; and (3) deference by judiciary to the regulator is not a blank check, even if there are complex technical issues and a discretionary decision. Practical implications – The identification of a Regulatory State in Mexico evidences that there are deep changes in the traditional relationship between Congress and regulators. Also, the deference granted by the courts to regulators must be considered as a consequence of such Regulatory State. Nonetheless and despite the deference to regulators, Judiciary´s role in building the telecommunications and broadcasting sector is paramount, because judicial decisions ultimately define it. Originality/value – Major changes to telecommunications and broadcasting have taken place in Mexico in the last years. Therefore, there has been scarce research and analysis about the new role of regulators, legislators, and judges, in the so called Regulatory State in Mexico. Moreover, the experience of Mexico may be valuable for other scholars which are assessing public policy in their own Latin American countries or in countries with similarities to them.


Author(s):  
Brigitte Granville

This chapter analyzes the impact of low inflation. It argues that despite repeated efforts by governing authorities to initiate anti-inflationary policies, long-lasting stabilization can prove elusive. Reducing inflation is one thing, but keeping it down is the real challenge. The chapter highlights the experiences of some Latin American countries in the 1970s and 1980s, Russia in the 1990s, and Argentina in the 2000s. One typical mistake was to choose the exchange rate as the nominal anchor, which allows the inflation rate to be reduced quickly, but its effect is temporary, as governments often use lower inflation as a reason to delay the necessary fiscal tightening, eventually leading to the collapse of the exchange rate peg and inflation striking back with a vengeance.


2014 ◽  
Vol 30 ◽  
Author(s):  
Claudia Cecilia Lardizabal ◽  
Ismene Rosales ◽  
Janaina Camile Pasqual ◽  
Gricelda Herrera ◽  
Sandra Mejia ◽  
...  

A matriz energética dos países da América Latina e Caribe tem um dos maiores índices de energias renováveis, quando comparada à de outras regiões do mundo. No entanto, até 2009, cerca de três quartos de sua estrutura correspondia a combustíveis fósseis, com a maioria dos países sendo importadores líquidos destes combustíveis. Esta situação marca a dependência da região dos efeitos das mudanças nas commodities energéticas. Sendo assim, a oportunidade está no maior uso de fontes renováveis de energia, que contribuem para a segurança energética do país e representam benefícios ambientais significativos. O objetivo deste trabalho é fornecer uma análise comparativa dos cenários energéticos atuais de seis países da América Latina (México, Honduras, Nicarágua, Brasil, Equador e Chile), a fim de avaliar as políticas, os programas e as estratégias implementadas na busca da maior participação das energias renováveis. Considerando a importância do nexo água-energia, realizou-se uma comparação de dados qualitativos, considerando o consumo de energia, emissões de CO2, PIB e retiradas de água por país. Os autores concluíram que, apesar das limitações tecnológicas e financeiras, todos os países envolvidos estão se movendo para a transformação de uma matriz baseada em combustíveis fósseis para uma matriz com bases renováveis. Este processo pode ser visto como resultado de políticas claras e estratégias que foram definidas, que incluem (mas não estão limitadas) a definição de regras de preços, preços preferenciais para a eletricidade gerada por meio de tecnologias de energia renovável e incentivos formulados para incentivar a produção de biocombustíveis.


Author(s):  
Roberto Frenkel ◽  
Martín Rapetti

AbstractThe paper analyses exchange rate regimes implemented by the major Latin American (LA) countries since the 1950s, with special attention to the period beginning in the 1970s. The aim is to evaluate the relationship between exchange rate regimes and macroeconomic performance. After an overview of the main trends followed by the major LA countries over the last 60 years, the paper focusses on regimes that were implemented (1) with stabilisation purposes (nominal anchor) and (2) with the aim of targeting competitive and stable real exchange rates. These sections analyse in greater detail some important links between exchange rate regimes and macroeconomic performance. The paper closes with an assessment of the experiences with exchange rate regimes in LA.


2021 ◽  
Vol 11 (3) ◽  
pp. 258-271
Author(s):  
Fernando Arias ◽  
Alfredo Salado ◽  
Carlos Medina ◽  
Mayteé Zambrano

5G has become a reality in Latin America and it is expected to boost the digital revolution with key capabilities, including higher speeds and ultra-low latency, thus enabling innovative solutions and socioeconomic development. But its deployment faces many challenges related to, among other factors, spectrum allocation and infrastructure deployment. In this work we assess the current public policy and regulatory environment in Latin America regarding the adoption and deployment of 5G technology, considering mainly the above-mentioned challenges. From the analysis, it is possible to note that Latin American countries exhibit different levels of commitment and progress in 5G deployment since, for example, the spectrum allocation and assignment for 5G is still underway, and many regulations hamper instead to facilitate the implementation of 5G networks. On the other hand, the analysis confirms the necessity of having public policies and regulations which define flexible, efficient and transparent processes for all aspects related to 5G deployment.


2020 ◽  
Vol 3 (3) ◽  
pp. 445-458
Author(s):  
Asma Awan ◽  
Imran Sharif Chaudhry ◽  
Furrukh Bashir ◽  
Rashid Ahmad

This research is an endeavor to reveal the dynamic association of real exchange rate volatility with real and monetary shocks and particularly with international financial integration in selected eight Latin American countries during 1992-2018. The estimation strategy employed in this research is the Generalized Method of Moments (GMM) to empirically obtain consistent estimates. Empirical results strongly supported the significant negative impact of financial integration on real exchange rate volatility when financial integration is approximated by the Chinn-Ito index. Furthermore, output volatility and money supply volatility both significantly contributed to increasing real exchange rate instability. An important policy implication is that process of financial integration needs to be more strengthened and shocks to output and money supply needs to be reduced to achieve lesser fluctuations of the real exchange rate in Latin American countries.


2020 ◽  
Author(s):  
CESAR CHAVEZ

Abstract In this research, I analyze the dynamic effects of undervaluation on the economic growth per captai of Latin American countries with a period 1980-2018. To estimate these effects, I use a Panel Vector Autoregressive (PVAR) whose estimator is System GMM. The undervaluation variable is created from different measures of the real exchange rate and I also use various measures of GDP per capita to calculate economic growth per capita. I include as control variables macroeconomic and human capital variables to control the different channels of spread of undervaluation on economic growth per capita. The results show that there is a positive effect depending on the definition of the real exchange rate used to calculate the undervaluation. In the results I include the Granger causality test, stability test and impulse response graphs in which I project the response of per capita economic growth to an undervaluation shock.


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