IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Tipos de Cambio Cuasi-fijo y Posibilidad de Crisis Financieras: Solarizar o Dolarizar la Economía Peruana?
[Fixed Exchange Rates and Possibilities of Financial Crisis: Solarizar or Dollarization of Peruvian Economy?]

Listed author(s):
  • Briceño Avalos, Hernán Ricardo

This working paper has been elaborated with the aim to provide Peruvian policymakers and scholars-academics with economic related concepts and views about the best Monetary Anchor for a Central Bank to deal with control of inflation as well as to prevent them far from possibilities of undesirable financial crisis. We must acknowledge that some causes of financial crisis in developing countries and developed countries like European are very similar such as historical high Fiscal Deficit, Public Debt, excess of domestic spending regarding national income (Current Account Deficit in the Balance of Payments), Moral Hazard, on the other hand reduction of the Foreign Exchange Reserve and Gross Domestic Saving. Furthermore, all the episodes are attached with over valuation of domestic currencies regarding the US$, under the adoption of Fixed Exchange Rate regimens including the Currency Board: Argentina, Brazil, Russia, East Asian, Mexico and Chile, where this price was compelling overvalued that led finally governments to devaluate dramatically their own domestic currencies with the aim to get competitiveness. This way, these countries suffered stoppages of capital influx, capital out flux going back their original countries, contraction of their Exports, Gross Domestic Product, increasing in unemployment rates. Therefore, for emerging and/or developing economies with open markets and relatively tiny participation in the world economy, as well as without the possibility of creating a global currency is highly recommendable to keep up with Flexible Exchange Rate regimens allowing intervention of the Central Bank to deal with external adverse shocks or domestic financial problems with the aim to reduce possibilities of financial crisis.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 42029.

in new window

Date of creation: Sep 2003
Handle: RePEc:pra:mprapa:42029
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Barro, Robert J & Gordon, David B, 1983. "A Positive Theory of Monetary Policy in a Natural Rate Model," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 589-610, August.
  2. Felipe G. Morandé & Matías Tapia, 2002. "Exchange Rate Policy in Chile: From the Band to Floating and Beyond," Working Papers Central Bank of Chile 152, Central Bank of Chile.
  3. Cipollini, A. & Kapetanios, G., 2009. "Forecasting financial crises and contagion in Asia using dynamic factor analysis," Journal of Empirical Finance, Elsevier, vol. 16(2), pages 188-200, March.
  4. Steven Radelet & Jeffrey Sachs, 1998. "The Onset of the East Asian Financial Crisis," NBER Working Papers 6680, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42029. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.