This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research
Volume Title: Financial Policies and the World Capital Market: The Problem of Latin American Countries
Volume Author/Editor: Pedro Aspe Armella, Rudiger Dornbusch, and Maurice Obstfeld, eds.
Volume Publisher: University of Chicago Press
Volume ISBN: 0-226-02996-4
Volume URL: http://www.nber.org/books/arme83-1
Publication Date: 1983
Chapter Title: List of Contributors, Indexes
Chapter Author: Pedro Aspe Armella, Rudiger Dornbusch, Maurice Obstfeld
Chapter URL: http://www.nber.org/chapters/c11197
Chapter pages in book: (p. 285 - 296) Contributors
Andrew Abel Guillermo A. Calvo Department of Economics Department of Economics Harvard University University of Chicago Cambridge, MA 02138 Chicago, IL 60637
Carlos F. Diaz Alejandro Domingo F. Cavallo Department of Economics Instituto de Estudios Economicos Yale University Fundacion Mediterranea New Haven, CT 06520 Cordoba, Argentina Robert E. Cumby Pedro Aspe Armella International Monetary Fund I. T. A. M. World Bank Mexico 20, DF, Mexico Washington, DC 20431
Olivier Jean Blanchard Rudiger Dornbusch Department of Economics Department of Economics Harvard University Massachusetts Institute Cambridge, MA 02138 of Technology Cambridge, MA 02139
Herminio A. Blanco Stanley Fischer Department of Economics Department of Economics Rice University Massachusetts Institute Houston, TX 77005 of Technology Cambridge, MA 02139 Michael Bruno Department of Economics Ricardo Ffrench-Davis Hebrew University CIEPLAN Jerusalem, Israel Santiago 9, Chile
285 286 Contributors
Jacob A. Frenkel Maurice Obstfeld Department of Economics Department of Economics University of Chicago Columbia University Chicago, IL 60637 International Affairs Building New York, NY 10027 Peter M. Garber Department of Economics Guillermo Ortiz University of Rochester Banco de Mexico Rochester, NY 14627 Mexico 1, DF, Mexico
Nissan Liviatan Juan Carlos de Pablo Department of Economics Paez 2608 Hebrew University 1406 Buenos Aires, Argentina Jerusalem, Israel A. Humberto Petrei Jose Saul Lizondo Instituto de Estudios Economicos I. T. A. M. Fundacion Mediterranea Rio Hondo Num. 1 Cordoba, Argentina Mexico 20, DF, Mexico Kenneth Rogoff Miguel Mancera Board of Governors Banco de Mexico Federal Reserve System Mexico 1, DF, Mexico Washington, DC 20551
Charles E. McLure, Jr. Thomas J. Sargent Senior Fellow Department of Economics Hoover Institution University of Minnesota Stanford University Minneapolis, MN 55455 Stanford, CA 94305 Mario Henrique Simonsen Michael Mussa Fundacao Getulio Vargas Graduate School of Business Praia de Botafogo 190 University of Chicago Rio de Janeiro 20000, Brazil Chicago, IL 60637 Author Index
Adams, W., 44, 50 Carillo-Flores, A., 26 Aghevli, B. B., 89 Cass, D., 98 Akhtar, M. A., 82 Cavallo, D. F., 166, 168 Alexander, W., 81, 86 Cavazos, M., 73, 76, 78 Aliber, R. Z., 227, 231, 257 Clower, R., 97 Allen, W. A., 231 Connolly, M., 250 Argy, V., 246, 250 Cor den, M., 52 Arnaudo, A. A., 166 Cordoba, J., 80 Arrow, K. J., 124 Cukierman, A., 107 Askin, S. S., 245 Cumberland, W. W., 30 Azariadis, 108, 125 Cumby, R. E., 223,246,257
Bacha, E. L., 27 Dadone, A. A., 166, 168 Banco Central de la Republica Argentina, Dantas da Silveira, J., 250 17, 18 Debreu, G., 124 Barro, R. J., 65, 120, 125 De Pablo, J. C, 203 Baumol, W. J., 97 de Paiva Areu, M., 12, 23, 29 Bhagwati, J. N., 46, 96 Dhrymes, P. J., 254 Bhalla, S. S., 256 Diamond, P., 65 Bilson, J. F. O., 223 Diaz Alejandro, C. F., 6, 16, 24, 27 Blanchard, O. J., 108 Dooley, M. P., 227, 257 Blejer, M. I., 274 Dornbusch, R., 138,145,199, 200, 218,250 Blinder, A. S., 108 Drazen, A., 59 Bolton, G., 30 Box, G. E. P., 85, 90, 91 Eaton, J., 29 Branson, W. H., 227 Engle, R. F., 254 Brenner, R., 110 Brillenbourg, A., 71 Fair, R. C, 254 Brock, W. A., 59 Fama, E. F., 222 Brothers, D. S., 253, 256 Farber, A., 222 Bruno, M. 131, 133, 141, 142, 145 Feige, E., 223 Business International, 256, 262 Ffrench-Davis, R., 218 Fieleke, N. S., 231 Calvo, G. A., 136, 206, 209, 210 Fischer, S., 50,60,61,68,105,120,125,210 Cardoso, E. A., 23, 250 Fisher, I., 222 287 288 Author Index
Fishlow, A., 23 Martinez-Ostos, R., 73 Flood, R., 151 McCormick, F., 229-30, 231 Foxley, A., 218 McCulloch, J. H., 223 Frankel, J. A., 222 McKinnon, R. I., 50, 231 Frenkel, J. A., 54, 137, 219, 227, 231, 250 Miles, M., 71, 81, 82, 86, 149 Friedman, 24, 25, 66, 210 Miller, N. C, 245 Mirrlees, J. A., 65 Garber, P., 151 Mundell, R. A., 50, 52, 54, 247 Gersovitz, M., 29 Murray, G. L., 250 Geweke, J., 223 Mussa, M. L., 54 Girton, L., 71, 246, 250, 252 Grauer, F. L., 222 Nassef, S., 79 Gray, J. A., 107, 124 Neuhaus, P., 18 Gylfason, T., 250 Nickelsburg, G., 103
Hansen, L. P., 223, 224, 254 Obstfeld, M., 223, 246, 247, 248, 250, 257 Harberler, G., 8, 25, 31 Officer, L. H., 227 Helliwell, J. F., 250 Ortiz, G., 80, 81, 87, 253 Herring, R. J., 246 Hodrick, R. J., 223, 224 Pedersson, G., 227 Huizinga, J.,246, 251 Phelps, E. S., 59 Polak, J. J., 32 Isard, P., 227, 257 Porter, M. G., 246, 249 Ize, A.,89 Porzecanski, A. C, 272 Potash, R. A., 21, 22 Jenkins, G. M., 90,91 Prachowny, M. F., 227 Johnson, H. G., 52, 56, 209 Prebisch, R., 16 Putnam, B. H., 82 Kareken, J. H., 60, 98, 100, 103 Kemmerer, E. W., 31 Ramos, J., 218 Keynes, J. M, 60,244 Rodriguez, C. A., 54, 136, 137, 199, 200, Kouri, P. J. K., 209, 246, 248, 250 204, 206, 209 Krasker, W. S., 224 Roll, R., 222 Krugman, P., 151 Roper, D., 71, 246, 250, 252
Lancaster, K., 49 Salera, V., 29 Landskroner, Y., 113 Samuelson, P. A., 42, 52, 60, 98 Lau, M., 271 Sargent, T. J., 120, 157,200 Lerner, A. P., 52 Schadler, S., 71 Levhari, D., 108, 115 Schwartz, A. H., 24, 25 Levi, M. D., 227,231 Shavell, S., 108 Levich, R. M, 227, 231 Sidrauski, M., 95, 96 Lippmann, W., 24 Siegel, J. J., 223 Lipsey, R. G., 49 Silber, S., 23 Litzenberger, R., 222 Sjaastad, L. A., 199,200,204 Liviatan, N., 108, 113, 115, 145 Soli's, L., 79, 80, 81,253,256 Lizondo, J. S., 224, 257 Solnik, B., 222 Logue, D. E., 278 Stehle, R. E., 222 Lucas, R. E., Jr., 97, 98, 104 Stewart, M. B., 82 Stockman, A. C, 222, 248 Magee, S. P., 271 Stolper, W., 52 Marion, W., 151 Suarez, E., 31 Marston, R. C, 246 Sussman, Z., 141, 142,245 289 Author Index
Svensson, L. E. O., 188 Viner, J., 49 Swoboda, A. K., 47 Wallace, N., 60, 98, 100, 102, 103, 200 Tesfatsion, L., 98 Wallich, H. C, 23, 24, 27, 30, 31 Tiao, G. C, 85, 90 White, H., 254 Tobin, J., 97, 99 Willett, T. D., 227, 278 Tower, E., 227 Winkler, M., 30 Townsend, R. M., 98, 104 Triffin, R., 17, 24, 32 Yaari, M., 98 Tsiang, S. C, 227 Yeager, L. B., 104 Turnovsky, S. J., 59
Ujiie, J., 271 Subject Index
Absorption approach, 32 Bretton Woods system, 48 Adjusted monetary base, 252 Budget constraint, government, 60, 62, 99; Appreciation, and borrowing, 132-33 household, 60 Argentina: debt service, 26-27; financial policy, 160-75; fiscal policy, 18-22; infla- Capital account, 137 tion, 157-58; monetary policy, 17, 21, Capital controls, 46, 103. See also Capital 201-2; real output, 8-9,159-60; sources mobility; Exchange controls of finance, 160-75; stabilization policy, Capital flight, 37 153-61, 200-204 Capital import tax, 145 Arrow-Borch condition, 127, 129 Capital inflow, and devaluation, 141; effect Arrow-Debreu model, 95-96, 124-25 of, 12; and interest rates, 258; in Latin Asset market model, 256-64 America, 6-7 Automatic adjustment, and exchange rate Capital markets, under inflation, 277; reg- policy, 145 ulated, 281-83 Capital mobility, degree of, 137; and eco- Balance of payments, 137; and capital in- nomic integration, 53-55; and flexible flow, 6-7; and inflation, 157 exchange rates, 143-46; limited, 138-42. Balance sheet, of banking system, 138; of See also Capital controls; Exchange con- firms, 165-75 trols Bank failures, 18 "Cash in advance" constraint, 97 Banking decontrol, 201, 204 Central bank reaction function, 251-56 Basic balance, 135 Cobb-Douglas utility function, 61 Bid-ask spread, 236 Coffee price maintenance, 23 Bimetallism, in Mexico, 73 Colombia: exchange rate controls, 17; Black market, in foreign exchange, 47 monetary policy, 17; real output, 8-9 Bond market equilibrium, 112-13 Commodity market, 134; and exchange ex- Border transaction, 82 pectations, 144-45 Borrowing, and development, 131-33 Commodity trade, and factor mobility, 52- Box-Jenkins technique, 90 53 "Brain drain," 43-44, 50. See also Factor Compensation, and welfare change, 43 mobility Consumption function, 189-91 Brazil: current account deficit, 187; debt Consumption loans, as inside debt, 99 service, 27-29; fiscal policy, 23; real out- Consumption loans model. See Overlap- put, 8-9 ping generations model
290 291 Subject Index
Convertibility, suspension of, 16 72-81. See also Capital controls; Capital Cost of credit, 132, 160-64 mobility Covered interest arbitrage, 227-31 Exchange gains tax, 235-38 Crawling peg, 142-43, 201-2 Exchange rate expectations, 138, 140, 257; Credibility model, of exchange rate, 211-14 and commodity markets, 144-45; and de- Cuba, monetary policy, 24 valuation, 84-85 Currency control, 103 Exchange rates, and automatic adjustment, Currency substitution, 47, 81-82, 209-11; 145; equilibrium, 99-100, 102-4; and in- and dollarization, 71; and monetary sta- flation, 146-49; lags in policy, 140; in bility, 86 Latin America, 6; real, 13-14. See also Current account balance, 136; in Brazil, Fixed exchange rate; Flexible exchange 187; deficits in, 188-95 rate Customs union, 49-50 Exchange rate variability, and risk, 82, 85 Expected inflation, and futures premium, Debt, steady state level, 194 264-65; and money demand, 136 Debt accumulation, effects of, 188 Expected utility function, 121-22 Debt/export ratio, 26-27 Export multiplier effect, 16 Debt service, 160-64; and deflation, 7, 25- Export subsidy, 142 27; and exchange rate policy, 12-13; and Export tax, and exchange rates, 205 fiscal policy, 21-23; in Latin America, 25-31; rescheduling, 27 Factor mobility, 46; and economic integra- Deficit financing, 253 tion, 51-55; policies for, 49-50. See also Deflation, and debt service, 7, 25-27; and "Brain drain" devaluation, 12; and tariffs, 8 Fiat money equilibrium, 101-2 Demand for money, 83, 87, 95-96, 136, Finance, costs of, 160-64 259-60, 262, 273-74 Financial integration, issues in, 50-51. See Devaluation, and deflation, 12; expecta- also Economic integration tions of, 84-85; and inflation, 46-49; Financial openness, of economies, 133. See nominal, 137; real, 138 also Capital mobility Direct foreign investment, 7 Financial policy, and inflation, 160-75 Dirty float, 202 Fiscal policy, in Latin America, 16-25 Discretionary policy, 201 Fisher hypothesis, 222-27 Disposable income, liquidity adjusted, 209 Fixed exchange rate, and optimum currency Disutility of debt, 194-95 area, 50-51 Dollarization, 71; effects of, 86-89 Fixed prices, 141 Domestic credit policy, 220-22; in Mexico, Flexible exchange rate, and capital mobil- 251-56 ity, 143-46; and currency substitution, Dual exchange rate, 57, 142, 215 71; and financial integration, 50-51; in Dual labor market model, 119-23, 126 Mexico, 79 Economic integration, channels of, 51-55; Flexible reserve requirement, 78 policies for, 41-57 Foreign debt, 160-65, 272-73; availability, Effective protection, 52-53 132; in Argentina, 160-75; in Mexico, Efficient contract problem, 111-12, 117 257-58 Efficient labor contract, 124-27 Foreign exchange markets, 47 Eurodollar market, 47 Foreign exchange reserves, 137, 203 Evasion, of taxes and other policy, 46-47 Foreign exchange risk, 82 Excess burden, of fixed exchange rates, 66- Forward contracts regulation, 234-35 67 Forward premium, 222 Excess demand function, 134 Exchange controls, 11-12, 17, 103; and Gold standard rules, 18 capital flight, 37-38; effects of, 141-42; Government budget constraint, 60, 62, 99 and managed float, 145-46; in Mexico, Government deficit, and devaluation, 102 292 Subject Index
Great Depression, effect on Latin America, Monetary shocks, and wage indexation, 115 6-11; and silver prices, 73-74 Money, in utility functions, 60, 211 Money demand functions, 83, 87, 95-96, Harrod-neutral technological progress, 192 136, 259-60, 262, 273-74 Hecksher-Ohlin theorem, 52 Money market equilibrium, 115-16, 119, High-powered money, 96 136-37 Hoarding, effects of, 140; in imports, 135 Money supply model, 260-62, 274 Moral hazard, 120, 129 Immigration policy, 50 Multiple exchange rates, 12. See also Dual Implicit contract theory, 119, 126-27 exchange rate Import substitutions, and domestic growth, 10, 13; policies for, 53 Neutrality, of wage indexation, 113-14 Import tariff, and exchange rates, 205 Nominal exchange rates, 12-13 Income taxation, maximum sustainable, 62 Inconvertible monies, 73 Offset coefficient, 248-50, 262-64, 270-72 Indexed bonds, 110-14 Open market operation, 262 Inflation, and exchange rate policy, 146- Optimal contracts, 111-14 49; and financial policy, 160-75; and Optimal inflation tax, 59-66 price controls, 277; and taxes, 181 Optimum currency area, 50 Inflation inertia, 219 Optimum growth model, 95 Inflation tax, 47; optimal, 59-66; real value Optimum tariff, 43 of, 103. See also Seigniorage Outside money, 96 Inside debt, 99; and prices, 102 Overlapping generations model, 98-104 Inside money, 96, 98 Overshooting, of exchange rate, 145-46 Interest equalization tax, 47 Interest parity theorem, 222, 227-31, 241- Pegged exchange rate, 138-42 42; deviations from, 227-38 "Peso problem," 224-25, 243 Intervention analysis, 85-86, 90-92 Policy constraints, 45-48 Intervention function, 92 Political risk factor, 83, 85, 194, 231 Investment costs, 181-90 Ponzi games, 189 Investment spending, 188-89 Portfolio shifts, and exchange rates, 205-9 Price controls, in Argentina, 201; and infla- Jensen's inequality, 222-23 tion, 157, 277 Price disturbance, transmission of, 54 Lags, in exchange rate policy, 140 Price level, and inside money, 102 Liquidity adjusted disposable income, 209 Price signaling, role of exchange rates, 131— Liquidity maintenance, and convertibility, 33, 143 16-17 Profit and loss statement, 168 Liquidity services, 209-11 Protectionism, 6-8, 13-15, 48 Purchasing power of exports, 6-7 Managed float, 146 Purchasing power of money, 110 Market efficiency, 223 Purchasing power parity, 13, 54 Medium of exchange, 60 Mexico: exchange controls, 72-81; fiscal Reaction function, of central bank, 251-56, policy, 24; monetary policy, 24, 72-81; 271 real output, 8-9, 80; and silver standard, Real exchange rate, 13-14, 134, 262-65; 24; sterilization policy, 245-67 appreciation in, 199, 210 Modigliani-Miller theorem, 108, 125 Real interest rate, 110, 212; and inflation, Monetary approach, to balance of pay- 180; and taxes, 183-84 ments, 32 Real money balances, 96, 134 Monetary policy, in Latin America, 16-25; Real openness, of economies, 133 in Mexico, 72-81; and sterilization pol- Real returns, to currency, 84, 99; on inside icy, 248-50 debt, 101; on saving, 99 293 Subject Index
Real wage rate, 110, 115-16 Taxation, and business finance, 279-80 Regional economic integration, 46 Tax diversification, 23 Reserve loss, with fixed exchange rates, 142 Terms of trade, 12 Retaliation, and commercial policy, 46 Trade deficits, and consumption, 192-93 Risk aversion, 119-20, 126-28 Transaction cost model, of money demand, Risk premium, 113-14, 211; and exchange 97 rate, 8, 222 Transaction costs, and interest arbitrage, Roca-Runciman treaty, 28 228-31 Transmission, of macroeconomic distur- Saving function, 98-99 bances, 54-55 Scientific tariff, 56 Transversality condition, 189 Second-best, principle of, 48-51 Triangular arbitrage, 228-31 Seigniorage, and government expenditure, Two-step, two-stage, least squares, 254 62-66; optimal, 29, 102 Sidrauski model, 96-97 Unexpected inflation, and real rates, 180 Siegel paradox, 223 Uniform tariff, 142 Silver prices, 73-74 Usury ceiling, 281 Silver standard, 24 Utility function, 60-61, 95-98, 121; ex- Smoot-Hawley Act (1930), 6 pected, 111; logarithmic, 191 "Social contrivance" of money, 101 Speculation, and capital flows, 218 Value added, 142 Speculative bubble, 102 "Voluntary" restraints on trade, 48 Spot exchange rate, 222 Stabilization policy, and private financing, Wage indexation, equilibrium, 107-8; neu- 153-65 trality of, 113-14, 126; optimal, 107-8, Sterilization policy, 140; and capital ac- 124 count, 241-51; and monetary policy, Wage indexation parameter, 109-10 245-67 Wages, as employer bonds, 109-14 Structural change, 9-10 Welfare criterion, specification of, 43-45 Subjective discount rate, 189 Wholesale price index, 15
Tariffs, and capital mobility, 52
PEDRO ASPE ARMELLA is chairman of the Department of Economics at the Institute Tecnologico Autonomo de Mexico. RUDIGER DORNBUSCH is professor of economics at the Massachusetts Institute of Technology and is the author of Open Economy Macroeconomics.
MAURICE OBSTFELD is associate professor of economics at Columbia University.
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