Abstract

BERMUDEZ, Cecilia. De facto exchange rate regimes and inflation targeting in Latin America: Some empirical evidence from the past decade. EconoQuantum [online]. 2014, vol.11, n.1, pp.31-57. ISSN 2007-9869.

We estimate de facto exchange rate systems for the seven most important Latin American economies (LA-7) between 1999 and 2011. We use the methodology developed by Zeileis, Shah and Patnaik (2010) because, unlike others developed so far, it captures the "fine" structure behind the regimes and identifies structural breaks at sharp dates. We conclude that the countries listed in AL-7 have moved towards more flexible exchange rate systems, though there are differences in the degree of exchange rate flexibility between countries that have implemented inflation target schemes and those that have not.

Keywords : Latin America; exchange rate regimes; inflation targeting.