Economic Survey of Latin America and the Caribbean 1992

image of Economic Survey of Latin America and the Caribbean 1992

Issued in two volumes - volume I gives insight into the economic trends, the international economy and the role of exchange rate policy in Latin America and the Caribbean. Volume II explores the economic developments by country. Complimentary statistical tables are included.



Macroeconomic policy and inflation

The macroeconomic policies applied by most of the countries in the region were similar to those of previous years, with domestic price stabilization being the main objective. Accordingly, the countries continued to place priority on attaining a financial balance in the public sector, maintained prudent monetary policies and watched closely over the exchange rate in an attempt to keep it in line with their inflation-reduction goals. The large volume of incoming capital flows contributed to a considerable appreciation of their currencies and hampered the implementation of their monetary policies, however, and this led some countries to take steps to regulate the inflow of financial resources, especially short-term funds. Tariff liberalization drives and programmes aimed at opening up the economy to foreign trade, which often coincided with a rise in the value of the local currency, also helped to dampen inflation, since a larger volume of imports, at lower domestic prices, tended to promote an expansion of total supply.


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