An Evaluation of Prevention Policies designed by Argentina and Brazil against the Transmission of the World Economic Crisis
This article discusses the chances of Brazil and Argentina to isolate themselves from the financial and economic crisis currently affecting the advanced nations1 . It describes the main tools employed by the governments to steer the domestic economic process in relative independence of the inte...
Guardado en:
| Autores principales: | , |
|---|---|
| Formato: | Working Paper |
| Lenguaje: | Inglés |
| Publicado: |
Universidad de Belgrano. Departamento de Investigaciones. Documentos de Trabajo, Facultad de Estudios para Graduados
2014
|
| Materias: | |
| Acceso en línea: | http://repositorio.ub.edu.ar/handle/123456789/2446 |
| Aporte de: |
| Sumario: | This article discusses the chances of Brazil and Argentina to isolate themselves from the financial
and economic crisis currently affecting the advanced nations1
. It describes the main tools employed by
the governments to steer the domestic economic process in relative independence of the international
conditions. While profiting from the improvement in their terms of trade, both Brazil and Argentina have
set up a number of barriers to the transmission of negative impulses deriving from the international crisis.
Such policies and measures are representative of those being applied throughout the emerging world.
Many countries resort to controlled experiments in currency depreciation, in order to keep imported goods
expensive and simultaneously provide incentives to exports. This might push inflation upwards, a reason
why monetary policy has to remain tight. This shows the risks associated with such isolation efforts and
thereby the relevance of this study.
The article begins by summarizing the current financial and economic world crisis as has been explained
elsewhere. In the following, the main factors behind the current strength of the South American economies
are highlighted. In a further step, the authors take a look at the usual mechanisms a country can resort
to in order to prevent “importing a crisis”. A short review of the policies applied since the eighties are
designed to help the reader understand today’s developments. Then, the prevention measures adopted
by Brazil and Argentina as well as their effectiveness are considered. Finally, the main lessons from this
experience are discussed. |
|---|