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Macroeconomic Stabilization in Latin America: Recent Experience and Some Sequencing Issues

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  • Edwards, Sebastian

Abstract

LThis paper reviews the experience of Latin American countries with structural reforms, and discusses the relationship between macroeconomic stabilization and trade liberalization programs undertaken in the region since the early 1980s. The problem of sequencing of stabilization and structural reforms is analyzed in detail. First from a theoretical perspective. Second, reviewing the stabilization programs implemental in Latin America on a case by case basis. Particular emphasis is given to the analysis of the fiscal consequences of the chosen sequencing, as well as its impact on the evolution of domestic savings and investment, and on foreign investment. The final part of the paper concentrates on the behavior of real exchange rates during the stabilization programs and its relationship with trade reforms.

Suggested Citation

Handle: RePEc:ags:inpora:294842
DOI: 10.22004/ag.econ.294842
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