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Exchange rate regime proposal for emerging countries: a Keynesian perspective

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  • Fernando Ferrari-Filho
  • Luiz Fernando De Paula

Abstract

This paper presents, in light of Keynesian theory and taking into account the emerging economies' reality in today's global world, an exchange rate regime proposal for emerging countries with the capability to mitigate their external vulnerability and fragility and their dependence on foreign capital, thus making possible the implementation of domestic economic policies that would permit macroeconomic stabilizationâunderstood, following Keynes, as being the combination of price stability and full employment. For this purpose, the paper revisits Keynes's proposals with regard to both exchange rate policy and capital inflows, with a view to showing how they contribute to maintaining full employment, develops a Post Keynesian view on financial globalization and the behavior of exchange rate, and presents a strategy for an exchange rate regime with capital controls for emerging countries.

Suggested Citation

  • Fernando Ferrari-Filho & Luiz Fernando De Paula, 2008. "Exchange rate regime proposal for emerging countries: a Keynesian perspective," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 31(2), pages 227-248, December.
  • Handle: RePEc:mes:postke:v:31:y:2008:i:2:p:227-248
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Luiz Fernando de Paula & Fernando Ferrari Filho, 2010. "The spread of Keynesianism in Brazil: The origins and experience of the Brazilian Keynesian Association," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(2), pages 248-255.
    2. Daniela Magalhães Prates & Luiz Fernanda De Paula & Barbara Fritz, 2016. "Keynes At The Periphery: Currency Hierarchy And Challenges For Economic Policy In Emerging Economies," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 110, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Abouelkhair, Anass & Gahaz, Taha & Y. Tamsamani, Yasser, 2018. "Choix du régime de change et croissance économique : Une analyse empirique sur des données de panel africaines
      [Exchange Rate Regime Choice and Economic Growth: An Empirical Analysis on African Pan
      ," MPRA Paper 84700, University Library of Munich, Germany.
    4. Abouelkhaira, Anass & Gahaz, Taha & Y. Tamsamani, Yasser, 2018. "Choix du régime de change et croissance économique : Une analyse empirique sur des données de panel africaines
      [Exchange Rate Regime Choice and Economic Growth: An Empirical Analysis on African Pan
      ," MPRA Paper 84613, University Library of Munich, Germany.

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