Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy
The paper shows that the impossibility to reach a real exchange ratetarget, as proposed by the "Monetary Trilemma" can be circumvented byadding one policy instrument. In the choice between countercyclical fiscalpolicy and control of capital movements, the first one appears as thepreferred...
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| Format: | Online |
| Language: | spa |
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Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
2004
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| Online Access: | https://revistas.unc.edu.ar/index.php/REyE/article/view/3807 |
| _version_ | 1811172118047490048 |
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| author | Milei, Javier Gerardo |
| author_facet | Milei, Javier Gerardo |
| author_sort | Milei, Javier Gerardo |
| collection | Portal de Revistas |
| description | The paper shows that the impossibility to reach a real exchange ratetarget, as proposed by the "Monetary Trilemma" can be circumvented byadding one policy instrument. In the choice between countercyclical fiscalpolicy and control of capital movements, the first one appears as thepreferred option, since it provides a stable equilibrium. Not only anequilibrium is not achieved in the second case, but the restrictions tocapital movements in an economy whith a low level of capitalization doesnot look like a sensible choice. |
| format | Online |
| id | oai:ojs.revistas.unc.edu.ar:article-3807 |
| institution | Universidad Nacional de Cordoba |
| language | spa |
| publishDate | 2004 |
| publisher | Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. |
| record_format | ojs |
| spelling | oai:ojs.revistas.unc.edu.ar:article-38072022-04-06T23:17:38Z Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy Real Exchange Rate Targeting: ¿Trilema Monetario o Control de Capitales? La Política Fiscal Milei, Javier Gerardo fiscal policy política fiscal The paper shows that the impossibility to reach a real exchange ratetarget, as proposed by the "Monetary Trilemma" can be circumvented byadding one policy instrument. In the choice between countercyclical fiscalpolicy and control of capital movements, the first one appears as thepreferred option, since it provides a stable equilibrium. Not only anequilibrium is not achieved in the second case, but the restrictions tocapital movements in an economy whith a low level of capitalization doesnot look like a sensible choice. En el presente trabajo se demuestra que la imposibilidad de alcanzar un objetivo de tipo de cambio real postulada por el trilema monetario se supera agregando un instrumento de política económica. Y ante la disyuntiva de elegir entre la política fiscal contracíclica y el control de capitales deberíamos inclinarnos por la primera ya que da como resultado un equilibrio estable, mientras que la segunda no, al margen de lo poco razonable que sería el control de capitales si la economía mostrara un bajo nivel de capitalización. Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2004-12-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/REyE/article/view/3807 10.55444/2451.7321.2004.v42.n2.3807 Revista de Economía y Estadística; Vol. 42 No. 2 (2004); 63-87 Revista de Economía y Estadística; Vol. 42 Núm. 2 (2004); 63-87 2451-7321 0034-8066 10.55444/2451.7321.2004.v42.n2 spa https://revistas.unc.edu.ar/index.php/REyE/article/view/3807/5006 Derechos de autor 2004 Javier Gerardo Milei http://creativecommons.org/licenses/by-nc-nd/4.0 |
| spellingShingle | fiscal policy política fiscal Milei, Javier Gerardo Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title | Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title_alt | Real Exchange Rate Targeting: ¿Trilema Monetario o Control de Capitales? La Política Fiscal |
| title_full | Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title_fullStr | Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title_full_unstemmed | Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title_short | Real Exchange Rate Targeting: Currency or Capital Control Problem? Fiscal Policy |
| title_sort | real exchange rate targeting currency or capital control problem fiscal policy |
| topic | fiscal policy política fiscal |
| topic_facet | fiscal policy política fiscal |
| url | https://revistas.unc.edu.ar/index.php/REyE/article/view/3807 |
| work_keys_str_mv | AT mileijaviergerardo realexchangeratetargetingcurrencyorcapitalcontrolproblemfiscalpolicy AT mileijaviergerardo realexchangeratetargetingtrilemamonetarioocontroldecapitaleslapoliticafiscal |