Contractionary depreciations in Latin America during the 2000s

Detalhes bibliográficos
Autor(a) principal: MONTANÉ,MARTÍN
Data de Publicação: 2021
Outros Autores: LIBMAN,EMILIANO, ZACK,GUIDO
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista de Economia Política
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000400723
Resumo: ABSTRACT This paper explores the effects of currency depreciations on output for the main Latin American countries that have been using Inflation Targeting for almost two decades. We construct VAR models for Brazil, Chile, Colombia, Mexico and Peru for the last two decades and we find that depreciations have short-run contractionary effects in Brazil and Mexico. We illustrate some of the policy implications of that finding by building a simple model, and we show that contractionary effects of depreciations may have destabilizing effects when monetary policy is conducted using a standard Taylor Rule.
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spelling Contractionary depreciations in Latin America during the 2000sInflation targetingvector autoregressionscontractionary effects of devaluationsmonetary policy rulesABSTRACT This paper explores the effects of currency depreciations on output for the main Latin American countries that have been using Inflation Targeting for almost two decades. We construct VAR models for Brazil, Chile, Colombia, Mexico and Peru for the last two decades and we find that depreciations have short-run contractionary effects in Brazil and Mexico. We illustrate some of the policy implications of that finding by building a simple model, and we show that contractionary effects of depreciations may have destabilizing effects when monetary policy is conducted using a standard Taylor Rule.Centro de Economia Política2021-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000400723Brazilian Journal of Political Economy v.41 n.4 2021reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/0101-31572021-3196info:eu-repo/semantics/openAccessMONTANÉ,MARTÍNLIBMAN,EMILIANOZACK,GUIDOeng2021-11-10T00:00:00Zoai:scielo:S0101-31572021000400723Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2021-11-10T00:00Revista de Economia Política - EDITORA 34false
dc.title.none.fl_str_mv Contractionary depreciations in Latin America during the 2000s
title Contractionary depreciations in Latin America during the 2000s
spellingShingle Contractionary depreciations in Latin America during the 2000s
MONTANÉ,MARTÍN
Inflation targeting
vector autoregressions
contractionary effects of devaluations
monetary policy rules
title_short Contractionary depreciations in Latin America during the 2000s
title_full Contractionary depreciations in Latin America during the 2000s
title_fullStr Contractionary depreciations in Latin America during the 2000s
title_full_unstemmed Contractionary depreciations in Latin America during the 2000s
title_sort Contractionary depreciations in Latin America during the 2000s
author MONTANÉ,MARTÍN
author_facet MONTANÉ,MARTÍN
LIBMAN,EMILIANO
ZACK,GUIDO
author_role author
author2 LIBMAN,EMILIANO
ZACK,GUIDO
author2_role author
author
dc.contributor.author.fl_str_mv MONTANÉ,MARTÍN
LIBMAN,EMILIANO
ZACK,GUIDO
dc.subject.por.fl_str_mv Inflation targeting
vector autoregressions
contractionary effects of devaluations
monetary policy rules
topic Inflation targeting
vector autoregressions
contractionary effects of devaluations
monetary policy rules
description ABSTRACT This paper explores the effects of currency depreciations on output for the main Latin American countries that have been using Inflation Targeting for almost two decades. We construct VAR models for Brazil, Chile, Colombia, Mexico and Peru for the last two decades and we find that depreciations have short-run contractionary effects in Brazil and Mexico. We illustrate some of the policy implications of that finding by building a simple model, and we show that contractionary effects of depreciations may have destabilizing effects when monetary policy is conducted using a standard Taylor Rule.
publishDate 2021
dc.date.none.fl_str_mv 2021-12-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000400723
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000400723
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/0101-31572021-3196
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Centro de Economia Política
publisher.none.fl_str_mv Centro de Economia Política
dc.source.none.fl_str_mv Brazilian Journal of Political Economy v.41 n.4 2021
reponame:Revista de Economia Política
instname:EDITORA 34
instacron:EDITORA_34
instname_str EDITORA 34
instacron_str EDITORA_34
institution EDITORA_34
reponame_str Revista de Economia Política
collection Revista de Economia Política
repository.name.fl_str_mv Revista de Economia Política - EDITORA 34
repository.mail.fl_str_mv ||cecilia.heise@bjpe.org.br
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