Financial Policies and the World Capital Market: The Problem of Latin American Countries (National Bureau of Economic Research Conference Report)

The essays brought together in this volume share a common objective: To bring a unifying methodological approach to the analysis of financial problems in developing, open economies. While the primary focus is on contemporary Latin America, the methods employed and the lessons learned are of wider applicability. The papers address the financial integration issue from three different perspectives. In some cases, a country study is the vehicle for an econometric investigation of a particular external linkage. In other cases, an individual country's experience suggests an economic model in which the stylized facts may be analyzed and developed. A third direction is unabashedly theoretical and formulates more general principles which are broadly applicable rather than country-specific. Stories Of The 1930s For The 1980s / Carlos F. Díaz Alejandro -- Optimal Economic Integration / Michael Mussa -- Seigniorage And Fixed Exchange Rates / Stanley Fischer -- Dollarization In Mexico / Guillermo Ortiz -- On Equilibrium Wage Indexation And Neutrality Of Indexation Policy / Nissan Liviatan -- Real Versus Financial Openness Under Alternative Exchange Rate Regimes / Michael Bruno -- Financing Private Business In An Inflationary Context / Domingo F. Cavallo And A. Humberto Petrei -- Debt And The Current Account Deficit In Brazil / Olivier Jean Blanchard -- Trying To Stabilize / Guillermo A. Calvo -- Interest Differential And Covered Arbitrage / José Saúl Lizondo -- Capital Mobility And The Scope For Sterilization / Robert E. Cumby And Maurice Obstfeld -- Panel Discussion : The Capital Market Under Conditions Of High And Variable Inflation / Juan Carlos De Pablo, Miguel Mancera, And Mario Henrique Simonsen. Edited By Pedro Aspe Armella, Rudiger Dornbusch, And Maurice Obstfeld. Result Of The National Bureau Of Economic Research Conference On Financial Policies And The World Capital Market: The Problem Of Latin American Countries, Held At The Instituto Technológico Autónomo De México In Mexico City, 26-27 March 1981--pref. Includes Bibliographies And Indexes. The story of interwar Latin American finance is one of high inflation, exchange rate crisis, and debt default. Today, once again, the Latin American financial scene attracts attention and demands analysis. The decade of the 1970s brought a huge increase in Latin American borrowing from the world capital market and greater global financial integration. While the primary focus is on contemporary Latin America the essays brought together in this volume are of wider applicability, and attempt to bring a unifying methodological approach to the analysis of financial problems in developing, open economies.This volume is the result of the National Bureau of Economic Research Conference on Financial Policies and the World Capital Market: The Problem of Latin American Countries, held at the Instituto Technologico Autonomo de Mexico in Mexico City, 26-27 March 1981.