Economic Policy And Stabilization In Latin America

A detailed analysis of economic policy in Latin America with particular attention devoted to the problem of controlling inflation and stabilization. Contents include an analysis of economic policies of the 1990s; country case studies of Brazil, Chile, Mexico, Argentina, and Bolivia; a thorough review of competing paradigms; a comparison of monitarist and structuralist approaches to the problem; mathematical and statistical modeling.

The debt crisis in Latin America has rekindled debate about the effects of the IMF's stabilization programs in the Third World. Critics contend that these programs have short-run recessionary impacts and damage prospects for long-term growth. In response, Fund economists point to cross-country studies revealing mixed impacts on growth rates coupled with significant success in achieving the IMF's stated goals: current account and balance-of-payments improvements and inflation rate reduction. Dr. Pastor argues that the traditional growth-oriented critique is theoretically misplaced, and he recasts Fund activities in terms of class and income distribution. Applying the methodology of previous Fund studies, he evaluates the effects of IMF programs in eighteen Latin American countries in the pre-crisis period (1965-1981).

This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1983.

Comprises eight papers which examine Latin America's economic reform process during the 1980s and 1990s, and considers future steps in this reform. Includes: rethinking Latin American economic policy; good governance after stabilization; capital inflows, real exchange rate and the Mexican crisis of 1994; liquidity management in Argentina; regional free trade agreements in Chile; and the social dimension of reform.

Since the 1980s, Latin American countries have initiated a re-orientation of economic policies in whose formulation and implementation the International Monetary Fund (IMF) and World Bank (WB) have played a key role. This book shows that the IMF/WB programmes have not achieved the expected results and allows the reader to understand the shortcomings and limitations of the orthodox approach. By analyzing the macro models that inspire policy based lending, the author argues that the weaknesses arise as a result of a questionable internal logic of the models, mistaken premises and a failure to account for the empirical evidence. The book claims and outlines an alternative Post-Keynesian and Structuralist framework to deal with stabilization and growth issues in Latin America. The basic model is based on important asymmetries among productive sectors and takes into account the existence of oligopolistic markets, money wage rigidities, income distribution and endogenous money. It is implied in this model the need to rethink the direction and overall form of economic policy.

The historic and increasing interdependence of the Latin American and U.S. economies makes an understanding of the political economies of Latin American nations particularly timely and important. After World War II, many nations initially implemented import substituting industrialization policies. Their outcomes, and the shift in policies, are related to the domestic policies and world economic conditions that led to government deficits, inflation, foreign borrowing, debt renegotiation, and renewed emphasis on common markets and other devices to stimulate trade and investment. In The Political Economy of Latin America in the Postwar Period, important policy measures are evaluated, such as indexation of prices and contracts; special provisions for financing the government through the Central Bank; stabilization; and deregulation of the economy. The introduction presents trends in Latin American growth and the factors that influence them. This is followed by parallel studies of the economic development of Argentina, Brazil, Chile, Cuba, Ecuador, Mexico, and Peru from 1945 to the mid-1990s. Noted experts bring their considerable experience to analyzing the content and impact of the economic theories that guided policymaking and their effects on output, income, and quality of life.