DOCSLIB.ORG

György Szapáry [email protected]

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
György Szapáry Gszap@T-Online.Hu György Szapáry [email protected] Education 1957-61: MA in economics, University of Louvain, Belgium 1966: Ph.D. in economics, University of Louvain. Work 1962 - 64: Research assistant at the University of Louvain 1965 - 66: EC Commission in Brussels. December 1966- August 1993: International Monetary Fund (IMF), Washington, DC. Last position: Assistant Director April 1990 - August 1993 Senior IMF Resident Representative in Hungary Sept. 1993 - 99 Deputy Governor of the National Bank of Hungary and member of the Monetary Council. Sept. 1999 – February 2001 Advisor to the President of the National Bank of Hungary. February 2001 – February 2007 Deputy Governor of the National Bank of Hungary and member of the Monetary Council. Other functions 1994 - 95: Alternate Governor for the European Bank for Reconstruction and Development 1993-2001 President of the Board of Directors, International Training Centre for Bankers, Budapest 1997-2001 Member of the Board, Budapest Commodity Exchange 1997-2001 Member of the Pensions Council, Budapest 1995 - 99: President of the Foundation for Enterprise Promotion of the Province of Jász-Nagykun-Szolnok, Hungary Since 1999: Member of the Advisory Council, European Studies Foundation (Europe 2002), Budapest Since 2001 Member of the Euro 50 Group Since 2006: Member of the Gyula Andrássy Foundation, Budapest May 2004 – February 2007 Member of the Economic and Financial Committee of the European Commission and of the European Central Bank’s International Relations Committee. August 2004 – February 2007 Member of the Hungarian Economic and Social Council (a consultative body of the Hungarian Government) Since March Member of the Supervisory Board and Audit Committee of T-Com Hungary Member of a steering group on public finances, EC Commission, Brussels Awards Sándor Popovics Award in recognition for outstanding contribution in the field of banking and monetary policy. Selected Publications G. Szapáry, Diffusion du progrčs et convergence des prix, Europe -Etats-Unis, 1899- 1962 , Neuwelarts, Paris and Brussels, 1965, Book R.J. Bhatia, B. Quinn, G. Szapáry: ”Stabilization Program in Sierra Leone”, IMF Staff Papers, Washington, D.C., Sept. 1969 M.I. Blejer and G. Szapáry, ”The 'Gulliver Effect' and the 'Optimal Divergence' Approach to Trade Policies: The Case of Nepal”, World Development, Vol.19, pp. 255-262, 1991 M.I. Blejer and G. Szapáry, ”The Evolving Role of Tax Policy in China”, Journal of Comparative Economics”, pp. 452-472, September, 1990 M.I. Blejer, D. Burton, S. Dunaway and G. Szapáry: ”China: Economic Reform and Macroeconomic Management” I.M.F., Occasional Paper 76, Washington, D.C., January 1991 G. Szapáry: ”Transition Issues: A Case Study of Hungary”, IMF DM/92/3, Washington D.C., October, 1992. G. Szapáry: ”Transition Issues as Seen Through the Experience of Hungary: There is No Cookbook to Go By”, in The Political Economy of the Transition Process in Eastern Europe, edited by László Somogyi, Edward Elgar, England, 1993. G. Szapáry: ”The National Bank of Hungary: From Cradle to Adulthood whilst Striving for Independence” In: Rebuilding the Financial System in Central and Eastern Europe, 1918-1994. Ed. by Ph. L. Cottrell. - Aldershot, Hants; Brookfield: Scolar Press; Ashgate Publ. 1997., pp.17-27. C. Cottarelli and G. Szapáry, editors, “Moderate Inflation: The Experience of Transition Economies”, Proceedings of a seminar held in Budapest, Hungary June 3, 1997, Washington D.C.: IMF; NBH, 1998. G. Szapáry and Z. M. Jakab: „Exchange Rate Policy in Transition Economies: The Case of Hungary”, Journal of Comparative Economics 26, Article No. JE981560, Academic Press, pp. 691-717. G. Szapáry: “What Impact will the Euro Have on the Candidate Countries of Central and Eastern Europe?”, The Euro-Zone: A New Economic Entity?, Bruylant, Bruxelles, 1999, pp.117-121. G. Szapáry: “Central European Reaction to the Financial Crises”, The Management of Global Financial Markets, FONDAD, The Hauge, 2000, pp. 142-156. G. Szapáry: “Is There a Good Defence for Emerging Markets Against Volatile Capital Flows?”, Materie, Gesit und Bewusstsein, Europäisches Forum Alpbach 1999, 2000, pp. 414-422. Zs. Darvas and G. Szapáry: “Financial Contagion in Five Small Open Economies: Does the Exchange Rate Regime Really Matter?”, International Finance, 3:1, 2000, pp. 25-51. G. P. Kiss and G. Szapáry: “Fiscal Adjustment in the Transition Process: Hungary during 1990-1999, Post-Soviet Geography and Economics, 2000, 41, No. 4, pp. 233- 264. G. Szapáry: “Maastricht and the Choice of Exchange Rate Regime in Transition Countries During the Run-Up to EMU”, NBH Working Papers No. 2000/7 G. Szapáry: “Banking Sector Reform in Hungary: What Have We Learned and What are the Prospect?”, Comparative Economic Studies, XLIV, No. 2., Summer 2002, pp. 103-124. G. Szapáry: „Is Maastricht too tough?”, Central Banking, Volume XIII., Number 1, August, 2002, pp. 75-91. G. Szapáry: „From Price Liberalization to Adopting the Euro: the Hungarian Way”, in Strategic Perspectives on The Euro, EU Enlargement and the Challenge of Risk Mitigation, Third volume on the Edmond Israel Foundation’s series, Capital Markets without Borders, pp. 117-123. G. Szapáry and J. von Hagen, editors, “Monetary Strategies for Joining the Euro”, Proceedings of a seminar held in Budapest, Hungary February 27-28, 2003 published by Edward Elgar Publishing Ltd. Zs. Darvas and G. Szapáry: “Business Cycle Synchronization in the Enlarged EU: Comovements in the New and Old Members, CEPR Discussion Paper No. 5179, and Open Economies Review, 2007 G. Orbán and G. Szapáry: “The Stability and Growth Pact From the Perspective of the New Member States”, Journal of Policy Modeling, Vol. 26 Issue 7 (2004), pp. 839- 864. Zs. Darvas, A. K. Rose and Gy. Szapáry: “Fiscal Divergence and Business Cycle Synchronization: Irresponsibility is Idiosyncratic”, NBER International Seminar on Macroeconomics 2005, eds J.A. Frankel and C.A. Pissarides, MIT Press. G. Szapáry: Comments on “The Maastricht Criteria on Price and Exchange Rate Stability and ERM II” in Euro Adoption in Central and Eastern Europe , ed. Susan Schadler, IMF 2005, pp. 142-146. G. Szapáry: Comments on “Inflation Differentials in EMU: the Spanish Case” in Modena y Crédito, El futuro de la Unión Europea Ampliada, 2005 .
Load more

Recommended publications
  • This Version: July 6, 2017 MY PAPERS in ECONOMICS: an ANNOTATED BIBLIOGRAPHY Edmar Bacha1
    1 This version: July 6, 2017 MY PAPERS IN ECONOMICS: AN ANNOTATED BIBLIOGRAPHY Edmar Bacha1 1. Introduction Since the mid-1960s, I have written extensively on development economics, the economics of Latin America and Brazil’s economic problems. My papers include essays on persuasion and reflections on economic policy-making experiences. I review these contributions roughly in chronological order not only because of the variety of topics but also because they tend to come together in specific periods. There are seven periods to consider, identified according to my main institutional affiliations: Yale University, 1964- 1968; ODEPLAN, Chile, 1969; IPEA-Rio, 1970-71; University of Brasilia and Harvard University, 1972-1978; PUC-Rio, 1979-1993; Academic research interregnum, 1994-2002; and IEPE/Casa das Garças since 2003. 2. Yale University, 1964-1968 My first published text was originally a term paper for a Master’s level class in international economics at Yale University. In The Strategy of Economic Development, Albert Hirschman suggested that less developed countries would be relatively more efficient at producing goods that required “machine-paced” operations. Carlos Diaz-Alejandro interpreted machine-paced as meaning capital-intensive 1 Founding partner and director of the Casa das Garças Institute of Economic Policy Studies, Rio de Janeiro, Brazil. With the usual caveats, I am indebted for comments to André Lara- Resende, Alkimar Moura, Luiz Chrysostomo de Oliveira-Filho, and Roberto Zahga. 2 technologies, and tested the hypothesis that relative labor productivity in a developing country would be higher in more capital-intensive industries. He found some evidence for this. I disagreed with his argument.
    [Show full text]
  • The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers
    Pursuit - The Journal of Undergraduate Research at The University of Tennessee Volume 9 Issue 1 Article 7 July 2019 The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers Jenna Demeter The University of Tennessee, Knoxville, [email protected] Follow this and additional works at: https://trace.tennessee.edu/pursuit Part of the Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Economic History Commons, Gender and Sexuality Commons, Growth and Development Commons, Income Distribution Commons, Industrial Organization Commons, Inequality and Stratification Commons, International and Comparative Labor Relations Commons, International Economics Commons, International Relations Commons, International Trade Law Commons, Labor and Employment Law Commons, Labor Economics Commons, Latin American Studies Commons, Law and Economics Commons, Macroeconomics Commons, Political Economy Commons, Politics and Social Change Commons, Public Economics Commons, Regional Economics Commons, Rural Sociology Commons, Unions Commons, and the Work, Economy and Organizations Commons Recommended Citation Demeter, Jenna (2019) "The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers," Pursuit - The Journal of Undergraduate Research at The University of Tennessee: Vol. 9 : Iss. 1 , Article 7. Available at: https://trace.tennessee.edu/pursuit/vol9/iss1/7 This Article is brought to you for free and open access by
    [Show full text]
  • DEFENDING the WOLF the Useful Contradiction of the Bundesbank Carlo Bastasin
    DEFENDING THE WOLF The Useful Contradiction of the Bundesbank Carlo Bastasin SEP Policy Brief No. 1 - 2014 The Deutsche Bundesbank, the German central bank, is commonly regarded as the Euroarea's boogeyman. The pressure imparted by the German monetary authority, for instance, rendered the European Central Bank reluctant to follow the footprints of the Federal Reserve and of other central banks, and engage in non- standard monetary policy measures that might rapidly put an end to the crisis that has been plaguing the euro zone. At several stages, during the current crisis, the ECB has been forced to take actions and prevent severe economic and financial dislocations. Given the institutional vacuum at the area-wide level and the lack of political capacity of the other institutions, the European Central Bank had often to move across the borders of its traditional domain. This has given reason to a slew of criticisms repeatedly and loudly voiced by the Bundesbank. Being also the most vocal policy actor evoking the fiscal risks associated with effecting implicit cross-border transfers via the ECB's balance sheet, the Bundesbank has appeared to have a “non- monetary” hidden agenda or even a “national political” mission. In fact, the Bundesbank has regularly appealed to two fundamental principles of sound economic and monetary policy management that cannot be easily overlooked by anybody concerned that monetary policy may lose its ability to preserve price stability. Should monetary independence be eroded by the increasing tasks devolved to the central banks, wider economic and political consequences might then arise. The first principle is the need to avoid fiscal dominance, not allowing inflation to be determined by the level of fiscal debts; the second is the “principle of responsibility” that sees a contradiction if individual responsibility is blurred by the intervention of joint liability as in the case of a State running unsound fiscal policies and being automatically bailed out by the mutualization of its liabilities.
    [Show full text]
  • From Designers to Doctrinaires: Staff Research and Fiscal Policy Change at the Imf
    FROM DESIGNERS TO DOCTRINAIRES: STAFF RESEARCH AND FISCAL POLICY CHANGE AT THE IMF Cornel Ban ABSTRACT Soon after the Lehman crisis, the International Monetary Fund (IMF) surprised its critics with a reconsideration of its research and advice on fiscal policy. The paper traces the influence that the Fund’s senior man- agement and research elite has had on the recalibration of the IMF’s doctrine on fiscal policy. The findings suggest that overall there has been some selective incorporation of unorthodox ideas in the Fund’s fis- cal doctrine, while the strong thesis that austerity has expansionary effects has been rejected. Indeed, the Fund’s new orthodoxy is con- cerned with the recessionary effects of fiscal consolidation and, more recently, endorses calls for a more progressive adjustment of the costs of fiscal sustainability. These changes notwithstanding, the IMF’s adaptive incremental transformation on fiscal policy issues falls short Elites on Trial Research in the Sociology of Organizations, Volume 43, 337 369 À Copyright r 2015 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 0733-558X/doi:10.1108/S0733-558X20150000043024 337 338 CORNEL BAN of a paradigm shift and is best conceived of as an important recalibra- tion of the precrisis status quo. Keywords: IMF; staff research; Keynesian; New Consensus Macroeconomics; austerity FROM GREAT EXPECTATIONS TO MODEST RECALIBRATIONS In 2008, many expected that the widespread outrage and economic hard- ship caused by the financial crisis would lead to the replacement of the neo- liberal policy paradigm. The rediscovery of Keynesian macroeconomics in 2008 2009 by the lea- ders of the G20 seemed to indicate that change was imminent.À Indeed, mainstream macroeconomic and finance economics seemed on their way to a historical trial.
    [Show full text]
  • The Institutional and Political Determinants of Fiscal Adjustment
    Bank of Canada Banque du Canada Working Paper 2006-1 / Document de travail 2006-1 The Institutional and Political Determinants of Fiscal Adjustment by Robert Lavigne ISSN 1192-5434 Printed in Canada on recycled paper Bank of Canada Working Paper 2006-1 February 2006 The Institutional and Political Determinants of Fiscal Adjustment by Robert Lavigne International Department Bank of Canada Ottawa, Ontario, Canada K1A 0G9 [email protected] The views expressed in this paper are those of the author. No responsibility for them should be attributed to the Bank of Canada. iii Contents Acknowledgements. iv Abstract/Résumé. v 1. Introduction . 1 2. The Literature. 3 2.1 Political stability . .4 2.2 Vested interests . .5 2.3 Social divisions . .5 2.4 Institutions . 6 3. Methodology . 7 3.1 Generating the dependent variable . 10 3.2 Selecting the explanatory variables . 15 3.3 Descriptive statistics . 17 3.4 Estimation framework. 19 4. Estimation Results . 22 4.1 Overview. .22 4.2 Developing countries . 23 4.3 Advanced countries. 26 5. Conclusion . 28 References. 31 Tables . 35 iv Acknowledgements The author wishes to thank Ryan Felushko for his excellent research assistance as well as Claudia Verno, Eric Santor, Jim Haley, Larry Schembri, Robert Lafrance, Denise Côté, Rose Cunningham, Marc-André Gosselin, Michael Francis, Glen Keenleyside, and Marianne Johnson for valuable comments and suggestions. v Abstract The author empirically assesses the effects of institutional and political factors on the need and willingness of governments to make large fiscal adjustments. In contrast to earlier studies, which consider the role of political economy determinants only during periods of fiscal consolidation, the author expands the field of analysis by examining periods when governments should be making fiscal efforts but fail to do so (or do not try), as well as periods when no adjustment is required.
    [Show full text]
  • Hyperinflation in Venezuela
    POLICY BRIEF recovery can be possible without first stabilizing the explo- 19-13 Hyperinflation sive price level. Doing so will require changing the country’s fiscal and monetary regimes. in Venezuela: A Since late 2018, authorities have been trying to control the price spiral by cutting back on fiscal expenditures, contracting Stabilization domestic credit, and implementing new exchange rate poli- cies. As a result, inflation initially receded from its extreme Handbook levels, albeit to a very high and potentially unstable 30 percent a month. But independent estimates suggest that prices went Gonzalo Huertas out of control again in mid-July 2019, reaching weekly rates September 2019 of 10 percent, placing the economy back in hyperinflation territory. Instability was also reflected in the premium on Gonzalo Huertas was research analyst at the Peterson Institute foreign currency in the black market, which also increased for International Economics. He worked with C. Fred Bergsten in July after a period of relative calm in previous months. Senior Fellow Olivier Blanchard on macroeconomic theory This Policy Brief describes a feasible stabilization plan and policy. Before joining the Institute, Huertas worked as a researcher at Harvard University for President Emeritus and for Venezuela’s extreme inflation. It places the country’s Charles W. Eliot Professor Lawrence H. Summers, producing problems in context by outlining the economics behind work on fiscal policy, and for Minos A. Zombanakis Professor Carmen Reinhart, focusing on exchange rate interventions. hyperinflations: how they develop, how they disrupt the normal functioning of economies, and how other countries Author’s Note: I am grateful to Adam Posen, Olivier Blanchard, across history have designed policies to overcome them.
    [Show full text]
  • Is There More Room to Negotiate with the IMF on Fiscal Policy?
    November 2014 Paper 9 Is There More Room to Negotiate with the IMF on Fiscal Policy? By Cornel Ban Executive Summary During the 1980s the IMF emerged as a global “bad cop,” demanding harsh austerity measures in countries faced with debt problems. Has the Great Recession changed all that? Is there more room to negotiate with the Fund on fiscal policy? The answer is yes. If we take a close look at what the IMF researchers say and what its most influential official reports proclaim, then we can see that there has been a more “Keynesian” turn at the Fund. This means that today one can find arguments for less austerity, more growth measures and a fairer social distribution of the burden of fiscal sustainability. The IMF has experience a maJor thaw of its fiscal policy doctrine and well-informed member states can use this to their advantage. These changes do not amount to a paradigm shift, a la Paul Krugman’s ideas. Yet crisis-ridden countries that are keen to avoid punishing austerity packages can exploit this doctrinal shift by exploring the policy implications of the IMF’s own official fiscal doctrine and staff research. They can cut less spending, shelter the most disadvantaged, tax more at the top of income distribution and think twice before rushing into a fast austerity package. This much is clear in all of the Fund’s World Economic Outlooks and Global Fiscal Monitors published between 2009 and 2013 with regard to four themes: the main goals of fiscal policy, the basic options for countries with fiscal/without fiscal space, the pace of fiscal consolidation, and the composition of fiscal stimulus and consolidation.
    [Show full text]
  • Working Paper Fiscal Adjustments: What Do We Know and What Are We Doing?
    No. 10-61 September 2010 WORKING PAPER FISCAL ADJUSTMENTS: What Do We Know and What Are We Doing? By Alberto Alesina The ideas presented in this research are the author’s and do not represent official positions of the Mercatus Center at George Mason University. 1) Introduction ∗ In the aftermath of the Great Recession, many OECD countries need to reduce large public-sector deficits and debts. The conventional wisdom about the political economy of fiscal adjustments goes more or less as follows. Deficit-reduction policies cause recessions. Voters do not like either spending cuts or tax increases, and they dislike the recessions associated with them. Therefore incumbent governments see fiscal adjustments as the kiss of death. They postpone them, and if they finally do implement adjustments, they will pay at the polls. In fact, many governments do the opposite: they try to increase deficits in order to win elections. Thus, we should expect fiscally “loose” governments to stay in office longer and fiscally prudent ones to be voted out of office. If this view—which is a combination of textbook Keynesianism with “conventional” notions of naive voters’ behavior—were true, we would face a dark near-future. Governments would postpone the bitter medicine of fiscal adjustments, and when they eventually enacted tight fiscal policies, they would face both recessions and incumbent political losses. The result would be a sort of so-called “W” recovery along with the political turmoil created by the loss of fiscally responsible governments. Fortunately, the accumulated evidence paints a different picture. First of all, not all fiscal adjustments cause recessions.
    [Show full text]
  • INFLATION and the COSTS of STABILIZATION Public Disclosure Authorized Historical and Recent Experiences and Policy Lessons
    INFLATION AND THE COSTS OF STABILIZATION Public Disclosure Authorized Historical and Recent Experiences and Policy Lessons Andres Solimano Public Disclosure Authorized This article reviews various experiences with stabilization. It first examines sta- bilization programs in the context of hyperinflation-looking at the experi- ences of Austria and Germany in the early 1920s and Bolivia in 1985-and then reviews and interprets the results of orthodox stabilization plans (applied in Argentina, Chile, and Uruguay during the mid-1970s and early 1980s) and those of heterodox programs (the austral plan in Argentina and the cruzado plan in Brazil, with a glance at the Mexican and Israeli experiences). The paper concludes with a discussion of conceptual issues and implications for the de- sign of stabilization policies. Public Disclosure Authorized Theaim of stabilization policies is to bring inflation down on a perma- nent basis and, if possible, at a low economic cost. This article exam- ines several anti-inflationary programs, both historical and recent, giving attention to the response of inflation to different stabilization measures and the real costs-in output losses and cuts in real wages-of bringing infla- tion down in the course of economic stabilization. The purpose is to shed light on the difficulties several economies are experiencing with stabilization and to draw lessons for policy from experience in the field. In the three cases examined-stabilization undertaken in conditions of hy- perinflation, orthodox programs, and heterodox plans (defined in the relevant sections that follow)-we examine the role played in the success or failure of each program by fiscal adjustment, incomes policies, stabilization of the exchange rate, the availability of foreign resources, and conflicts over income Public Disclosure Authorized The World Bank Research Observer, vol.
    [Show full text]
  • The Benefits of Fiscal Consolidation in Uncharted Waters
    OCCASIONAL PAPER SERIES NO 121 / NOVEMBER 2010 THE BENEFITS OF FISCAL CONSOLIDATION IN UNCHARTED WATERS by Philipp Rother, Ludger Schuknecht and Jürgen Stark OCCASIONAL PAPER SERIES NO 121 / NOVEMBER 2010 THE BENEFITS OF FISCAL CONSOLIDATION IN UNCHARTED WATERS by Philipp Rother, Ludger Schuknecht and Jürgen Stark NOTE: This Occasional Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. In 2010 all ECB publications feature a motif taken from the €500 banknote. This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1646279. © European Central Bank, 2010 Address Kaiserstrasse 29 60311 Frankfurt am Main, Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet http://www.ecb.europa.eu Fax +49 69 1344 6000 All rights reserved. Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the author(s). Information on all of the papers published in the ECB Occasional Paper Series can be found on the ECB’s website, http://www.ecb.europa.eu/pub/scientifi c/ ops/date/html/index.en.html ISSN 1607-1484 (print) ISSN 1725-6534 (online) CONTENTS CONTENTS ABSTRACT 4 ACKNOWLEDGEMENTS 5 SUMMARY 6 1 INTRODUCTION
    [Show full text]
  • Constructing Continuity in Economic Ideas in the IMF
    Constructing continuity in economic ideas in the IMF By: Gary Lowery A thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy The University of Sheffield Faculty of Social Sciences Department of Politics April 2016 2 Acknowledgements To Cheryl and Bruce who, for entirely different reasons this would never have happened. To every other family member who has helped along the way, particularly Dave for taking the time to read and offer comments. 3 4 Contents Abstract 9 Introduction 11 Chapter 1: Theoretical approach 31 Chapter 2: The IMF in historical context 57 Chapter 3: Contextualising the failure of neoliberal economic ideas 85 Chapter 4: Economic policy I 109 Chapter 5: Economic policy II 135 Chapter 6: Financial sector liberalization I 163 Chapter 7: Financial sector liberalization II 191 Conclusion 233 Bibliography 5 6 Abbreviations AFC Asian Financial Crisis BIS Bank for International Settlements BWS Bretton Woods System FAD Fiscal Affairs Department FSAP Financial Sector Assessment Programme FSB Financial Stability Board FSF Financial Stability Forum GFSR Global Financial Stability Report GDP Gross Domestic Product IMF International Monetary Fund IPE International Political Economy IR International Relations MacPR Macro-prudential regulation MCMD Monetary and Capital Markets Department MicPR Micro-prudential regulation NDB New Development Bank UMPs Unconventional Monetary Policies VAR Value at Risk WEO World Economic Outlook ZLB Zero Lower Bound 7 8 Abstract In 2008 the neoliberal economic ideas steering the course of global economic governance seemingly collapsed as the world entered into the greatest financial and economic crash since the Great Depression. Initially a range of precipitating causes were offered including lax monetary policy and a miss-pricing of risk, common to which was an assumption that although severe, the downturn was limited to policy failures in a relatively stable economic framework, and therefore constituted a crisis for neoliberal global economic governance.
    [Show full text]
  • The Case of Chile
    WORKING PAPER The Case of Chile Rodrigo Caputo and Diego Saravia JANUARY 2019 A Program of 1126 E. 59th St, Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu The Monetary and Fiscal History of Chile, 1960–2016 Rodrigo Caputo Diego Saravia CESS, Oxford University-USACH Central Bank of Chile Abstract Chile has experienced deep structural changes in the last fifty years. In the 1970s, a massive increase in government spending, not financed by an increase in taxes or debt, induced high and unpredictable inflation. Price stability was achieved in the early 1980s after a fixed exchange rate regime was adopted. This regime, however, generated a sharp real exchange rate appreciation that exacerbated the external imbalances of the economy. The regime was abandoned and nominal devaluations took place. This generated the collapse of the financial system, which had to be rescued by the government. There was no debt default, but in order to service the public debt, the fiscal authority had to generate surpluses. Since 1990, this was a systematic policy followed by almost all administrations and helped to achieve two different but related goals. It contributed to reducing the fiscal debt and enabled the central bank to pursue an independent monetary policy aimed at reducing inflation. We are grateful to Jorge Alamos, Luis Felipe Céspedes, Jos´e D´ıaz, Pablo Garc´ıa, Alfonso Irarr´azabal, Jos´e Matus, Juan Pablo Medina, Juan Pablo Nicolini, Eric Parrado, Claudio Soto, Jaime Troncoso, Rodrigo Valdés, Gert Wagner, and seminar participants at the Central Bank of Chile, the University of Chicago, the University of Barcelona, LACEA 2017, the BFI–University of Chicago 2017 Conference, the BFI–Central Bank of Chile 2008 Conference, and the BFI–IDB Conference in 2008 for helpful comments and discussions.
    [Show full text]