The Limits to Governance: Assessing Alternative Exchange Rate Regimes for Emerging Markets, the Case of Latin America.

• Autores: Brian Murata
• Localización: Tópicos Selectos de Recursos: Como disminuir la corrupción y mejorar la gobernabilidad en países de desarrollo / coord. por Andy Hira, Javier Serrudo, 2014, ISBN 978-109-5628-79-9, págs. 97-114
• Idioma: inglés
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• Resumen

  • The maintenance of a competitive exchange rate is important for an emerging market economy. At the same time, certain regime types have become harder to sustain under the current global economy, reflecting a move towards more market-friendly approaches. This paper critically assesses whether an alternative exchange rate regime � a Currency Transactions Tax (CTT) � can feasibly be implemented in emerging market economies, using Latin America as a test region. This paper finds that the international system creates limits on regime choices and a CTT is faced with challenges that mitigate its feasibility. This paper concludes with the notion that managed floating is a more sustainable regime given the limits to governance that the region faces but there also exists a possibility of improved policy space as trends in the global economy continue.