IDEAS home Printed from
   My bibliography  Save this book chapter

Argentina and Brazil Risk: A “Eurocentric” Tale

In: Monetary Policy and Macroeconomic Stabilization in Latin America


  • Jorge Braga Macedo

    (Nova University and Tropical Research Institute)

  • Martin Grandes

    (American University of Paris)


This paper suggests that the practical operation of the European Exchange Rate Mechanism (ERM) provides important lessons for authorities in developing countries struggling to implement sustainable exchange rate regimes to support economic convergence. These lessons are beginning to spread beyond the European continent, reaching in particular Argentina and Brazil. The difficulty in adapting a code of conduct like that of the ERM in Latin America is certain to be greater given the absence of financial reputation in either one of the two main members of Mercosul and the novelty of peer pressure among them. The “Eurocentric” tale this paper tells about Argentinian and Brazilian risk posits that the decoupling visible since 2001 could be sustained by enhanced regional surveillance in the Mercosul if financial reputation in its two main members were sufficient. While this tale is for the long term, it provides an anchor for the difficult choices Argentina and Brazil face in trying to earn credibility abroad.

Suggested Citation

  • Jorge Braga Macedo & Martin Grandes, 2005. "Argentina and Brazil Risk: A “Eurocentric” Tale," Springer Books, in: Rolf J. Langhammer & Lúcio Vinhas Souza (ed.), Monetary Policy and Macroeconomic Stabilization in Latin America, pages 153-172, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-28201-3_9
    DOI: 10.1007/3-540-28201-7_9

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-540-28201-3_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.