Nominal anchors and macroeconomic coordination options In MERCOSUR

This study deals with the question of macroeconomic coordinanation in the context of MERCOSUR, analysing the contribution that different types of nominal anchors (monetary and exchangerate) could make to the achievement of convergence of nominal indicators and sustained economic growth. The possible gains in terms of well-being associated with policy coordination are explored, in order to permit a rational evaluation of proposals for greater monetary coordination. An analysis is made of the problem of selecting the nominal anchor most suitable for serving as the basis for cooperative agreements, in an economy affected by real and monetary disturbances.