Abstract

The research question leading this dissertion is what accounts for the variation in the choice of the exchange rate level of flexibility in inflationary macroeconomic settings. The main argument of it is that, in an inflationary environment, the factors that account for the choice of a particular exchange rate regime are both the degree of concentration of decision-making capacity in the executive power hands and the level of internationalization of the industry and banks. The combination of these variables engenders different triadic configurations inside which the preferences of the involved actors interact to produce different exchanges rate decisions (first level of analysis). In a second level of analysis, more idiosyncratic elements are considered and an attempt is made to identify bargaining situation and tools and integrate them into a general but still rudimentary qualitative model

This framework is applied to three study cases: Chile (1973-1982), Argentina (1991-2001), and Brazil (1993-1999)

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