Dollarization, exchange-rate anchor and international reserves

Technical discussions of stabilization alternatives for Brazil have recently focusedon the utilization of the exchange-rate as a nominal anchor and measures that involvea degree of dollarization of the economy. The latter would imply official sanction for the increasingsubstitution of foreign for na...

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Detalles Bibliográficos
Autor: Jr., Paulo Nogueira Batista
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1993
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1331
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1331
Access Level:acceso abierto
Palabra clave:Dolarização
inflação
estabilização
Dollarization
inflation
stabilization
Descripción
Sumario:Technical discussions of stabilization alternatives for Brazil have recently focusedon the utilization of the exchange-rate as a nominal anchor and measures that involvea degree of dollarization of the economy. The latter would imply official sanction for the increasingsubstitution of foreign for national currency, a kind of decision that the experienceof several Latin American countries has shown to be extremely difficult to reverse. Moreover,exchange-rate based stabilizations have often unleashed balance of payments crises. Thispaper reviews Argentina’s recent stabilization program and some of the lessons it may holdfor Brazil. It argues that the Argentinian approach, as well as some of its variations, cannotbe applied successfully in Brazil. JEL Classification: E31; F31.