Exchange Rate Regimes in the Major Latin American Countries since the 1950s: Lessons from History

ROBERTO FRENKEL AND MARTÍN RAPETTI
REVISTA DE HISTORIA ECONÓMICA 30.1 (2012): 157-188

The paper analyses exchange rate regimes implemented by the major Latin American (LA) countries since the 1950s, with special attention to the period beginning in the 1970s. The aim is to evaluate the relationship between exchange rate regimes and macroeconomic performance. After an overview of the main trends followed by the major LA countries over the last 60 years, the paper focuses on regimes that were implemented (1) with stabilization purposes (nominal anchor) and (2) with the aim of targeting competitive and stable real exchange rates. These sections analyze in greater detail some important links between exchange rate regimes and macroeconomic performance. The paper closes with an assessment of the experiences with exchange rate regimes in LA.