Case: Argentina’s Monetary Crisis In the 1990s Argentina was the darling of the international financial community. The country had fixed the exchange rate for the Argentinean peso to the U.S. dollar at $1 = 1 peso. Maintaining the exchange rate had required Argentina to adopt strict anti-inflationary policies, which had succeeded in bringing down Argentina’s historically high inflation rate and stimulated economic growth. By 2001, however, the economy was running into trouble. Global economic growth
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Questions: 1. How did the fixed exchange rate against the dollar that Argentina adopted in the 1990s benefit the economy? By adopting a fixed exchange rate, the government reduced uncertainties for all economic agents in the country. As businesses had the perfect knowledge that prices are fixed and therefore not going to change, hence they could plan ahead in their productions. This also helps the government maintain low inflation, which in the long run should keep interest rates down and stimulate
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MP A R Munich Personal RePEc Archive Optimal choice of an exchange rate regime: a critical literature review Mariam Ouchen Cadi Ayyad University, Faculty of Economics Marrakesh Morocco, University of Basel 17. January 2013 Online at http://mpra.ub.uni-muenchen.de/43907/ MPRA Paper No. 43907, posted 21. January 2013 12:56 UTC Optimal Choice of an Exchange Rate Regime: A Critical Literature Review 1 Mariam OUCHEN Laboratory of innovation, responsibility and sustainable development Cadi Ayyad University
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America, out of IMF’s control World Economy and Latin America 20 December, 2011 Contents Introduction Past relationship between Latin America and IMF How LAC could get out of IMF’s control Conclusion Introduction Latin America was a volatile region with a history of exceptionally high inflation rates, substantial macroeconomic instability, and a record of unsuccessful monetary and fiscal stabilizations. However, during the past decade, Latin America’s economy has strengthened their body and
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wheeler-dealers made vast profits, the international crises of the 1990s faded from memory. But now depression economics has come to America. When the great housing bubble of the mid-2000s burst, the U.S. financial system proved as vulnerable as those of developing countries caught up in earlier crises—and a replay of the 1930s seems all too possible. In this new, greatly updated edition of The Return of Depression Economics, Krugman shows how the failure of regulation to keep pace with an increasingly
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WP/04/12 The Late 1990s Financial Crisis in Ecuador: Institutional Weaknesses, Fiscal Rigidities, and Financial Dollarization at Work Luis I. Jacome H. © 2004 International Monetary Fund WP/04/12 IMF Working Paper Monetary and Financial Systems Department The Late 1990s Financial Crisis in Ecuador: Institutional Weaknesses, Fiscal Rigidities, and Financial Dollarization at Work Prepared by Luis I. Jácome H.1 Authorized for distribution by Mark Swinburne January 2004 Abstract
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http://commdocs.house.gov/committees/bank/hba57160.000/hba57160_0f.htm EXCHANGE RATE STABILITY IN INTERNATIONAL FINANCE FRIDAY, MAY 21, 1999 U.S. House of Representatives, Committee on Banking and Financial Services, Washington, DC. The committee met, pursuant to call, at 10:00 a.m., in room 2128, Rayburn House Office Building, Hon. James A. Leach, [chairman of the committee], presiding. Present: Chairman Leach; Representatives Bachus, Ryan, Toomey, Frank, Sherman, Mascara and
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secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and to reduce the poverty around the world. IMF was created in 1945 and it’s an organization of 187 countries. Why IMF was created and how it works? The IMF, also known as the “Fund,” was conceived at a United Nations conference convened in Bretton Woods, New Hampshire, United States, in July 1944. The 44 governments represented at that conference sought to build a framework for economic
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012-IBE-CaseStudies.docx Academic Year 2011-2012 International Business Environment Jean-Guillaume DITTER, PhD Groupe ESC Dijon Bourgogne – Burgundy School of Business SUPPORT DOCUMENT I - CASE STUDIES The texts making-up this document review and emphasize significant issues covered during the sessions. The questions asked at the beginning of each set of texts are meant to help students identify the issues that they should pay attention to. Students will work in teams on one single
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market economies are so different from advanced economies and then discuss why developing strong fiscal, financial and monetary institutions is so critical to the success of inflation targeting in emerging market countries. Then it discusses two emerging market countries which illustrate what it takes to make inflation targeting work well, Chile and Brazil. It then addresses a particularly complicated issue for central banks in emerging market countries who engage in inflation targeting: how they deal
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