Modus operandi del Nuevo Consenso Macroeconómico en Brasil, Chile y México

Translated title of the contribution: The Modus Operandi of New Consensus Macroeconomics in Brazil, Chile and Mexico

Aida Garcia Lazaro, Ignacio Perrotini

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This text provides a critical analysis of the experiences of Brazil, Chile and Mexico, countries that have adopted the inflationary targeting monetary policy espoused by New Consensus Macroeconomics (NCM). Using cointegration and error correction models, as well as a discussion of the major facts of the case, we contrast the NCM with the empirical evidence available. One essential feature of its modus operandi in these economies lies in the fact that inflation control is crucially dependent on the appreciation of the exchange rate. The essential hypothesis of the NCM cannot be accepted. Similarly, its monetary policy, in which inflation depends on the product gap, contradicts the export-led growth model adopted by these countries and is a recessive method of stabilizing prices.
Translated title of the contributionThe Modus Operandi of New Consensus Macroeconomics in Brazil, Chile and Mexico
Original languageSpanish
Pages (from-to)35-63
JournalProblemas del Desarrollo: Revista Latinoamericana de Economia
Volume45
Issue number179
DOIs
Publication statusPublished - 2014

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