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Macroeconomic Adjustment and Structural Change: The Experience of Argentina, Brazil and Chile in 2000-2010

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  • Jorge Katz

    () (INTELIS, University of Chile)

  • Gonzalo Bernat

    () (University of Buenos Aires)

Abstract

This paper attempts to throw light upon the influence macroeconomic policies have on structural change and microeconomic behaviour. We compare the cases of Chile and Brazil, on the one hand, and Argentina on the other, as these countries opted for different macroeconomic policy regimes. Whereas Chile and Brazil adopted an ‘inflation targeting’ regime, Argentina proceeded on the basis of an administrated exchange rate regime. The main conclusion of our research is that both regimes were incapable of adequately dealing with issues of international competitiveness and of equity improvement and had to be supplemented with further public sector interventions beyond management of the fundamentals in the economy. The evidence suggests that more than adequate management of macro fundamentals is needed in ‘real life’ policy making.

Suggested Citation

  • Jorge Katz & Gonzalo Bernat, 2013. "Macroeconomic Adjustment and Structural Change: The Experience of Argentina, Brazil and Chile in 2000-2010," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 37-58, July.
  • Handle: RePEc:umk:journl:v:5:y:2013:i:2:p:37-58
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    References listed on IDEAS

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    1. Diego Bastourre & Jorge Carrera & Javier Ibarlucia, 2008. "Commodity Prices in Argentina. What Does Move the Wind?," Money Affairs, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 1-30, January-J.
    2. Broto, Carmen, 2011. "Inflation targeting in Latin America: Empirical analysis using GARCH models," Economic Modelling, Elsevier, vol. 28(3), pages 1424-1434, May.
    3. Mulder, Nanno, 2006. "Aprovechar el auge exportador de productos básicos evitando la enfermedad holandesa," Comercio Internacional 80, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Bello, Omar & Heresi, Rodrigo, 2008. "El auge reciente de precios de los productos básicos en perspectiva histórica," Macroeconomía del Desarrollo 71, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Spatafora, Nikola*Warner, Andrew, 1995. "Macroeconomic effects of terms-of-trade shocks : the case of oil-exporting countries," Policy Research Working Paper Series 1410, The World Bank.
    6. Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009. "Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
    7. International Monetary Fund, 2010. "When and Why Worry About Real Exchange Rate Appreciation? The Missing Link Between Dutch Disease and Growth," IMF Working Papers 10/271, International Monetary Fund.
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    More about this item

    Keywords

    macroeconomic policy; macro-to-micro interactions; structural change;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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