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1 Political Shocks and Asset Prices Daniel Carnahan
Political Shocks and Asset Prices Daniel Carnahan (Business Insider) Sebastian Saiegh (University of California San Diego) Abstract We estimate how asset prices respond to a range of political shocks, including changes in a country’s economic stewardship, national elections, coup d'états, wars, and terrorist attacks. Multiple instances of these events took place in Argentina between 1967 and 2020. Using an event study approach and over 13,000 daily prices from the Buenos Aires exchange, we find that stock-market volatility increases in the days immediately following unexpected, major policy- shifting events. These results hold irrespective of whether market returns are measured in nominal terms, in local consumption units, or in US dollars. Our analysis allows us to establish comparisons across different types of political shocks while avoiding the identification problems of multi-country event studies. The most significant increase in post-event risk is associated with irregular government turnovers (coup d'états, presidential death, resignations); approximately 100 percent on average, when returns are expressed in US dollars. Volatility also increases in the days immediately following a defeat in an international war, national elections and changes in the country’s economic stewardship. No changes in stock market volatility occur, however, after terrorist attacks or when the date of a new administration’s inauguration is publicly known and determined sufficiently far in advance. Word Count: 10,929 1 Introduction Investors concerned about non-commercial risks need to consider their exposure to political events that may affect the value of their assets. These political risks can originate in specific government actions, such as laws or regulations. -
The Current Argentine Inflation. the Need of an Heterodox Vision to Analyse Its Causes and Specificities
The current Argentine inflation. The need of an heterodox vision to analyse its causes and specificities. Julio Eduardo Fabris Pablo Julio Lopez José Villadeamigo 1. INTRODUCTION After the 2001 crisis that caused the financial default, the Argentina Republic is going through a high growth phase, driven specially by the agricultural and combustibles exports and, in lesser extend, by the imports substitution considering the peso devaluation. Even though all analysts agree to point out the correlation between this economic prosperity and the increase of the international commodities prices, this situation doesn’t seem to be changing for the moment. However, also according to national and international analysts, there are some threats for this growth path: the likelihood of an energetic crisis and the aggravation of an incipient inflation process. In this paper we focus on the second problem, trying to specify the causes and the mechanisms underlying the prices increases. We start making a brief reference to the present situation, which most remarkable characteristic is the moderate inflation in a high growth context. We synthesize the orthodox criticism and the acknowledgement of the problem by the pro-government sectors. We revise the government measures concerning the inflation problem (price agreements, wages increases restrictions, the agricultural and oil exports withholdings, the transport subventions, the oil prices controls) and the criticized government manoeuvres to disguise the prices index. Then, we make a schematic summary of the inflation theories. Continuously, we briefly recount the history of the Argentine economy inflation, comparing the present inflation with the inflation in different past stages. Finally, based on the previous developments, we establish the main features of the present inflation trying to point out the significant elements underlying the process from those who have only temporary effects or are not relevant in the present situation. -
The Reaction to Economic Globalization in Latin America: a Case Study of Argentina Lisa A
University of South Florida Scholar Commons Graduate Theses and Dissertations Graduate School 7-11-2006 The Reaction to Economic Globalization in Latin America: A Case Study of Argentina Lisa A. Warner University of South Florida Follow this and additional works at: http://scholarcommons.usf.edu/etd Part of the American Studies Commons Scholar Commons Citation Warner, Lisa A., "The Reaction to Economic Globalization in Latin America: A Case Study of Argentina" (2006). Graduate Theses and Dissertations. http://scholarcommons.usf.edu/etd/3831 This Thesis is brought to you for free and open access by the Graduate School at Scholar Commons. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. The Reaction to Economic Globalization in Latin America: A Case Study of Argentina by Lisa A. Warner A thesis submitted in partial fulfillment of the requirements for the degree of Master of Arts Department of Political Science College of Arts and Sciences University of South Florida Major Professor: Harry E. Vanden, Ph.D. Steven C. Tauber, Ph.D. Jorge Nef, Ph.D Date of Approval: July 11, 2006 Keywords: economic liberalism, neoliberalism, development, economic crisis, néstor kirchner © Copyright 2006 , Lisa A. Warner Table of Contents Abstract ii Chapter One Introduction 1 Chapter Two Literature Review and Methodology 7 Advocates of Globalization 7 Opponents of Globalization 15 Alternative Theories of Development 18 Methodology -
Case Formerly Known As GIOVANNA a BECCARA and OTHERS*) (CLAIMANTS
ICSID CASE NO. ARB/07/5 INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES WASHINGTON, D.C. ABACLAT AND OTHERS (Case formerly known as GIOVANNA A BECCARA AND OTHERS*) (CLAIMANTS) and THE ARGENTINE REPUBLIC (RESPONDENT) __________________________________ DECISION ON JURISDICTION AND ADMISSIBILITY __________________________________ ARBITRAL TRIBUNAL Professor Pierre Tercier, President Professor Georges Abi-Saab, Arbitrator Professor Albert Jan van den Berg, Arbitrator Secretary to the Tribunal: Mr. Gonzalo Flores Date of dispatch to the Parties: 4 August 2011 ICSID CASE NO. ARB/07/5 Representing Giovanna a Beccara and Representing The Argentine Republic others Dra. Angélina María Esther Abbona Ms. Carolyn B. Lamm Procuradora del Tesoro de la Nación Argentina Mr. Jonathan C. Hamilton Procuración del Tesoro de la Nación Argentina Ms. Abby Cohen Smutny Posadas 1641 Ms. Andrea J. Menaker Buenos Aires (C.P. 1112) Mr. Francis A. Vasquez, Jr. Argentina WHITE & CASE LLP 701 Thirteen Street, N.W. and Washington, D.C. 20005 U.S.A. Mr. Jonathan I. Blackman Mr. Matthew D. Slater and Mr. Carmine D. Boccuzzi Ms. Inna Rozenberg Avv. Vittorio Grimaldi Mr. Ezequiel Sánchez Herrera Avv. Paolo Marzano CLEARY GOTTLIEB STEEN & HAMILTON LLP GRIMALDI E ASSOCIATI One Liberty Plaza Via Pinciana, 25 New York, NY 10006 00198 Rome U.S.A. Italy and Dr. José Martínez de Hoz, Jr. Dra. Valeria Macchia PEREZ ALATI, GRONDONA, BENITZ, ARNTSEN & MARTINES DE HOZ (JR.) Suipacha 1111 – Piso 18 C1008AAW Buenos Aires Argentina * For the change of name, see § 641 below. 1 ICSID CASE NO. ARB/07/5 Table of Contents I. PARTIES ........................................................................................................................................ 10 A. CLAIMANTS .......................................................................................................................... 10 B. RESPONDENT ........................................................................................................................ 11 II. -
Crecimiento Económico Y Concentración Del Poder Institucional
argentina: crecimientoreVista de económico ciencia p oly concentraciónítica / Volumen delespecial poder / institucional2007 / 29 – 42 ARGENTINA: CRECIMIENTO ECONÓMICO Y CONCENTRACIÓN DEL PODER INSTITUCIONAL AlejAndro Bonvecchi Artículos UniversidAd TorcUATo di TellA CIENCIA POLÍTICA AgUsTinA girAUdy UniversiTy of norTh cArolinA AT chApel hill resumen el año 2006 estuvo marcado por la continuidad del crecimiento económico, por la creciente concentración de poder en el poder ejecutivo nacional y por la territorialización y faccionalización de los principales partidos políticos nacionales. durante este año también emergieron tensiones económicas, partidarias, y sociales que llevaron al gobierno nacional a introducir modificaciones en el funcionamiento de la microeconomía, en la configuración de alianzas políticas para las elecciones generales de 2007 y en las relaciones internacionales. estas nuevas políticas a su vez generaron una modificación en los patrones de organización y protesta sociales, rompiendo de ese modo con tendencias observadas en los años anteriores. abstract the year 2006 was marked by the continuity of economic growth, the increasing concentration of power within the federal executive Branch, and by the territorialization and factionalism of the main national political parties. during this year, economic, political, and social tensions emerged; all of which prompted the national government to introduce modifications in: the functioning of the micro-economy, the configuration of political alliances to prepare for the 2007 general elections, and in foreign policy. these new policies in turn, led to changes in the patterns of social organization and protest, thus breaking with the trends observed in previous years. palaBras claVe • crecimiento económico • concentración de poder en el poder ejecutivo nacional • territorialización y faccionalización de partidos políticos • cambios en la microeconomía • alianzas política y las relaciones internacionales I. -
El Dueño: La Historia Secreta De Néstor Kirchner
Luis Majul EL DUEÑO La historia secreta de Néstor Kirchner, el hombre que maneja los negocios públicos y privados de la Argentina Espejo de la Argentina - Planeta 2 © 2009, Luis Majul Derechos exclusivos de edición en castellano reservados para todo el mundo © 2009, Grupo Editorial Planeta S.A.I.C. Publicado bajo el sello Planeta® Independencia 1668, C 1100 ABQ, Buenos Aires, Argentina www.editorialplaneta.com.ar Diseño de cubierta: Departamento de Arte de Editorial Planeta Diseño de interiores: Alejandro Ulloa 6º edición: noviembre de 2009 10.000 ejemplares Impreso en Sevagraf S. A., Costa Rica y Panamericana Km 35, Buenos Aires, en el mes de noviembre de 2009. IMPRESO EN LA ARGENTINA / PRINTED IN ARGENTINA Queda hecho el depósito que previene la ley 11.723 ISBN: 978-950-49-2157-8 3 Para María China Conte-Grand, Octavio Majul y Victoria Majul, por orden de aparición. Cada uno de ellos sabe por qué. 4 COLABORACIÓN PERIODÍSTICA Cristian Solís, Marcelo López Masía y Fernando Lema AGRADECIMIENTOS A mis papás, Tita y Julio, porque me siguen enseñando que vale la pena resistir. A Jorge Fernández Díaz, por cada palabra justa en el momento clave. A los compañeros de la radio, la tele, hipercritico.com y la productora, quienes soportaron los momentos de tensión y lo disimularon con la pregunta: -¿Cuándo vas a terminar ese bendito libro? 5 SUMARIO PRÓLOGO.................................................................................................. 9 PRIMERA PARTE EL VERDADERO KIRCHNER 1. "LA VENGANZA DEL BOLUDO"............................................................... -
From Neoliberalism to Neo-Developmentalism? the Political Economy of Post-Crisis Argentina, 2002-2007
1 FROM NEOLIBERALISM TO NEO-DEVELOPMENTALISM? THE POLITICAL ECONOMY OF POST-CRISIS ARGENTINA, 2002-2007 A Dissertation Submitted for the Degree of Doctor of Philosophy University of Sheffield Hilal Gezmis Department of Politics Faculty of Social Sciences March 2015 2 Contents ABSTRACT ..................................................................................................................................... 4 ACKNOWLEDGEMENTS .................................................................................................................. 5 Abbreviations ................................................................................................................................ 6 List of Tables ................................................................................................................................. 9 CHAPTER 1. INTRODUCTION ......................................................................................................... 11 1.1. Problematizing the Approaches to the New Left ........................................................................ 12 1.2. Towards a “New” Approach to Neo-developmentalism ............................................................. 16 1.3. Argument and Contributions of the thesis ................................................................................. 19 1.3.1. Financial Regulation............................................................................................................. 23 1.3.2. Trade Policy ....................................................................................................................... -
Argentina: Incumbent Presidential Victory and Tensions Within the Macroeconomic Model
REVISTA DE CIENCIA POLÍTICA / VOLUMEN 28 / Nº 1 / 2008 / 35 – 59 ARGENTIN A : VICTORI A PRESIDENCI A L OFICIALISTA Y TENSIONES EN EL ESQUEM A M A CROECONÓMICO Argentina: Incumbent Presidential Victory and Tensions within the Macroeconomic Model ALEJANDRO BONVECCHI Universidad Torcuato Di Tella AGUSTINA GIRAUDY University of North Carolina at Chapel Hill RESUMEN El año 2007 estuvo marcado por la continuidad del crecimiento económico, por las tensiones surgidas en la implementación del esquema macroeconómico de tipo de cambio elevado con superávit fiscal y comercial (inflación y deterioro del superávit fiscal primario del sector público), por la consolidación del dominio electoral del partido oficialista Frente para la Victoria (FPV) con su triunfo en las elecciones generales y legislativas, y por la territorialización y faccionalización de los principales partidos políticos nacionales. Durante 2007 se observó una mejoría de los índices socioeconómicos (desempleo, pobreza e indigencia), así como un incremento de los niveles de conflictividad sindical, principalmente en las provincias. En el plano internacional, sobresalieron la conflictiva relación con Uruguay y la continuidad de la alianza económica con Venezuela. Palabras clave: Crecimiento económico, inflación, victoria presidencial/legislativa oficialista, territorialización de partidos políticos, conflictos sindicales. ABSTRACT The year 2007 was marked by the continuity of economic growth, the tensions stemming from the implementation of the macroeconomic model (i.e., inflation and decline of the public sector’s primary fiscal surplus), which rests on a high exchange rate and commercial and fiscal surplus, the consolidation of the electoral predominance of the incumbent party Frente para la Victoria (FPV) in the general and legislative elections, and by the territorialization and fractionalization of the main national political parties. -
DETERMINANTS of CENTRAL BANK INDEPENDENCE in DEVELOPING COUNTRIES: a TWO-LEVEL THEORY by Ana Carolina Garriga BA, Internationa
DETERMINANTS OF CENTRAL BANK INDEPENDENCE IN DEVELOPING COUNTRIES: A TWO-LEVEL THEORY by Ana Carolina Garriga BA, International Relations, Universidad Católica de Córdoba, 1996 MA, Law of the European Union, Universidad Complutense de Madrid, 1999 Submitted to the Graduate Faculty of the College of Arts and Sciences in partial fulfillment of the requirements for the degree of Doctor of Philosophy University of Pittsburgh 2010 UNIVERSITY OF PITTSBURGH COLLEGE OF ARTS AND SCIENCES This dissertation was presented by Ana Carolina Garriga It was defended on May 25, 2010 and approved by Dissertation Co-Advisor: Barry Ames, Professor, University of Pittsburgh Dissertation Co-Advisor: David H. Bearce, Associate Professor, University of Pittsburgh George A. Krause, Professor, University of Pittsburgh Mark Hallerberg, Professor, Hertie School of Governance ii Copyright © by Ana Carolina Garriga 2010 iii DETERMINANTS OF CENTRAL BANK INDEPENDENCE IN DEVELOPING COUNTRIES: A TWO-LEVEL THEORY Ana Carolina Garriga, PhD University of Pittsburgh, 2010 This dissertation answers the following question: What are the determinants of central bank independence (CBI) in developing countries? I argue that in developing countries CBI is the product of vulnerable governments trying to attract foreign investors and creditors. Incumbents‘ vulnerability increases when they experience need for capital. I define need for capital as the presence of growth problems, coupled with losses of FDI or high levels of foreign debt. Countries needing capital have to either attract investment or borrow funds in the international market. Because developing countries cannot rely on their reputation to attract capital, they need to signal their commitment to stable economic policy. I argue that CBI is one of the principal signals that international investors and lenders ask for. -
Texto Completo (Pdf)
POSTData 18, Nº 1, DEL “PERONISMO IMPURO” AL “KIRCHNERISMO PURO”: LA CONSTRUCCIÓN DE UNA NUEVA IDENTIDAD POLÍTICA DURANTE LA PRESIDENCIA DE NÉSTOR KIRCHNER EN ARGENTINA (2003-2007) por Ana Soledad Montero* y Lucía Vincent** Néstor Kirchner llegó a la presidencia argentina en mayo de 2003 luego de que el país atravesara una de las crisis institucionales más profundas de la historia. Elegido con un escaso número de votos, terminó su gobierno con un poder extraordinario: su fuerza política ganó las elecciones de 2007 y le entregó la banda presidencial a su esposa, Cristina Fernández de Kirchner. Ocho años después, el 27 de octubre de 2010, murió siendo el líder político por antonomasia, el hombre que marcaba el ritmo de la política argentina y a quien debían enfrentar aquellos que quisieran conquistar el poder en las elecciones de 2011. Las consecuencias de su muerte sólo podrán aquilatarse con el tiempo, pero el derrotero entre la asunción a la presidencia y el fin de su gobierno puede analizarse hoy con cierta perspectiva. ¿Cómo construyó Kirchner su liderazgo político a lo largo de sus más de cuatro años como presidente? ¿Cómo conformó una identidad política propia? ¿Cuáles fueron los momentos y coyunturas en que esa identidad se fue configurando, consolidando y mutando? Nuestra hipótesis inicial es que Kirchner llegó a la presidencia de la mano del Partido Justicialista (PJ) para luego conformar, dentro del partido y por fuera de él, una identidad política propia, la “identidad kirchnerista”. Siguiendo a Aboy Carlés (2001), enten- demos que una identidad política se configura a partir de la conjunción de tres elementos: por un lado, una serie de alianzas y articulaciones; por otro lado, un conjunto de fronteras y límites a partir de los cuales se define una * UBA – CONICET, Argentina. -
By Daniel Santoro When Argentinian President Néstor Kirchner Came to Power on May 25, 2003, Amid the Economic and Social Crisis
By Daniel Santoro When Argentinian President Néstor Kirchner came to power on May 25, 2003, amid the economic and social crisis fueled by the resignation of his predecessors, Fernando De la Rúa and several interim presidents, Kirchner promised to send corrupt officials and businessmen to prison. However, four years later no one in his administration has been imprisoned for corruption— until now. This year, for the first time in his administration, Kirchner dismissed four officials, including his minister of finance, for being linked to corruption. Unfortunately, the four dismissals look more like gestures to diffuse media pressure than sincere measures to combat corruption. Kirchner will step down on Dec. 10, 2007, probably to be succeeded by his wife, Senator and presidential candidate Cristina Fernández de Kirchner, without having made significant strides in the fight against corruption. Kirchner’s only positive step was naming independent judges such as Raúl Zaffaroni and Ricardo Lorenzetti to the Supreme Court of Justice of the Nation (CSJN – Corte Suprema de Justicia de la Nación) in 2003. But those appointments, though laudable, were not accompanied by active measures against offenders. On the contrary, they were followed by controversial decisions such as increasing funding for building infrastructure and awarding contracts without public bidding. The president used “the crisis of 2001” —an economic collapse that extended from 1999 to 2002—as justification for these decisions. The president continued to allow the use of fiduciary funds—public accounts exempt from normal oversight and the laws of financial administration. In fact, three of the four firings are linked to fiduciary funds. -
Argentina: Crecimiento Economico Y Concentracion Del Poder Institucional
REVISTA DE CIENCIA POLITICA / VOLUMEN ESPECIAL / 2a)7 / 29 - 42 ARGENTINA: CRECIMIENTO ECONOMICO Y CONCENTRACION DEL PODER INSTITUCIONAL ALEJANDRO BONVECCHI UNIVERSIDADToRCUAro Di TEUJ AGUSTINA GiRAUDY UNIVERSITY OF NORTH CAROUNA AT CHAPEL HIU Resumen El ano 2006 estuvo marcado por la continuidad del crecimiento econ6mico. por la creciente concentraci6n de poder en ei Poder Ejecutivo nacionai y por ia territorializaciiin y faccionaiizacidn de los principales partidos poifticos nacionales. Durante este ano tambiSn emergieron tensiones econfimicas, partidarlas. y sociales que lievaron al gobierno nacionai a introducir modificaciones en ei funcionamiento de ia microeconomfa. en ia confieuracion de aiianzas polftlcas para ias elecciones generaies de 2007 y en las reiaciones internacionales, Estas nuevas polfticas a su vez genefaron una modificaci6n en ios patrones de organi^acibn y protesta sociaies, rompiendo tie ese modo con tendencias observadas en los aiios anteriores. Abstract The year 2006 was marked by the continuity of economic growth, the increasing concentration of power within the federai Executive Branch, and by the territorialization and factionaiism of the main national poiiticai parties. During this year, economic, poiiticai. and social tensions emerged; all of which prompted tfie national government to introduce modifications in: the functioning of the micro-economy, the configuration of poiiticai alliances to prepare for the 2007 general elections, and in foreign poiicy. These new poiicies in turn, led to changes m ttie patterns of social organization and protest, thus breaking wfth the trends observed in previous years. PALABRAS CLAVE • Crecimiento economico • Concentraci6n de poder en el Poder Ejecutivo nacional • Territorializacion y faccionalizacion de partidos politicos • Cambios en ia microeconomia • Aiianzas politica y las relaciones internacionales I.