Edited by Fernando Toledo, Professor of International Monetary Economics, Faculty of Economic Sciences, University of La Plata, Argentina and Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Editor-in-Chief, Challenge, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute

‘Monetary Policy and Challenges in Latin America manages to articulate a set of chapters around dialoguing themes, identifiable controversies, and clear messages. They address topics that have always been of interest to the research agenda of the region and require constant updating: criticism of the mainstream, study of the concrete specificities of Latin American economies, pursuit of alternative economic policies, and commitment to structurally addressing the economic and social ills imposed on the region by its peripheral position.’

• Contents:Introduction to Monetary Policy Challenges in Latin America xxiFernando Toledo and Louis-Philippe RochonPART I ALTERNATIVE VIEWS ABOUT CENTRALBANKS AND MONETARY POLICY IN LACS1 Assessing the new “integrated policy framework”:a counterfactual analysis of the case of Argentina 2Sebastián Valdecantos2 Macroeconomic policy under a managed floatingexchange rate regime: a critical appraisal of theinternational currency hierarchy literature 16Simone Deos and Enzo GerioniPART II MONETARY POLICY TRANSMISSIONCHANNELS IN LACS3 Inflation targeting in open economies: the contradictionsof determinacy and stability 34Esteban Pérez Caldentey and Matías Vernengo4 Limitations of monetary policies in open developingeconomies: external capital inflows and sterilisation policies 59Noemí Levy Orlik5 Global financial cycle and monetary policy rules:a neo-Kaleckian model for emerging markets anddeveloping economies 78Gabriel Michelena and Fernando ToledoPART III MONETARY POLICIES AND EXCHANGE RATES IN LACS6 Exchange rate management in Latin America: towards themaking of a policy target exchange rate 97Daniel Pérez-Ruiz, Gary Dymski, and Annina Kaltenbrunner7 Real exchange rates, growth, and inflation targeting 117Nelson Barbosa Filho8 When are devaluations more contractionary? A quantileVAR estimation for Argentina 132Gabriel Montes-Rojas and Nicolás BertholetPART IV MONETARY POLICIES, INTERNATIONALRESERVES, AND SUSTAINABLE FINANCE IN LACS9 Latin American Reserve Fund: Latin America’salternative to the IMF? 150William N. Kring10 Climate change, monetary policy, and green finance inLatin America: the open economy dimension 168Pablo G. Bortz and Nicole ToftumPART V MONETARY POLICIES, CENTRAL BANKS,INCOME INEQUALITY, AND FISCAL POLICIES IN LACS11 Fiscal responses to income inequality surges. A panelestimation for Emerging Market and DevelopingEconomies (EMDEs) 185Jorge Carrera, Pablo de la Vega, and Fernando Toledo12 Fiscal and monetary policy challenges after COVID-19:The Argentinean case 206Damián Pierri13 International reserves, repurchase agreements, and theBrazilian monetary policy 220Sylvio Antonio Kappes14 External debt and economic growth in Latin America andthe Caribbean 230Alfredo Schclarek CurutchetIndex 256

Edited by Fernando Toledo, Professor of International Monetary Economics, Faculty of Economic Sciences, University of La Plata, Argentina and Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Editor-in-Chief, Challenge, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute

‘Monetary Policy and Challenges in Latin America manages to articulate a set of chapters around dialoguing themes, identifiable controversies, and clear messages. They address topics that have always been of interest to the research agenda of the region and require constant updating: criticism of the mainstream, study of the concrete specificities of Latin American economies, pursuit of alternative economic policies, and commitment to structurally addressing the economic and social ills imposed on the region by its peripheral position.’

• Contents:Introduction to Monetary Policy Challenges in Latin America xxiFernando Toledo and Louis-Philippe RochonPART I ALTERNATIVE VIEWS ABOUT CENTRALBANKS AND MONETARY POLICY IN LACS1 Assessing the new “integrated policy framework”:a counterfactual analysis of the case of Argentina 2Sebastián Valdecantos2 Macroeconomic policy under a managed floatingexchange rate regime: a critical appraisal of theinternational currency hierarchy literature 16Simone Deos and Enzo GerioniPART II MONETARY POLICY TRANSMISSIONCHANNELS IN LACS3 Inflation targeting in open economies: the contradictionsof determinacy and stability 34Esteban Pérez Caldentey and Matías Vernengo4 Limitations of monetary policies in open developingeconomies: external capital inflows and sterilisation policies 59Noemí Levy Orlik5 Global financial cycle and monetary policy rules:a neo-Kaleckian model for emerging markets anddeveloping economies 78Gabriel Michelena and Fernando ToledoPART III MONETARY POLICIES AND EXCHANGE RATES IN LACS6 Exchange rate management in Latin America: towards themaking of a policy target exchange rate 97Daniel Pérez-Ruiz, Gary Dymski, and Annina Kaltenbrunner7 Real exchange rates, growth, and inflation targeting 117Nelson Barbosa Filho8 When are devaluations more contractionary? A quantileVAR estimation for Argentina 132Gabriel Montes-Rojas and Nicolás BertholetPART IV MONETARY POLICIES, INTERNATIONALRESERVES, AND SUSTAINABLE FINANCE IN LACS9 Latin American Reserve Fund: Latin America’salternative to the IMF? 150William N. Kring10 Climate change, monetary policy, and green finance inLatin America: the open economy dimension 168Pablo G. Bortz and Nicole ToftumPART V MONETARY POLICIES, CENTRAL BANKS,INCOME INEQUALITY, AND FISCAL POLICIES IN LACS11 Fiscal responses to income inequality surges. A panelestimation for Emerging Market and DevelopingEconomies (EMDEs) 185Jorge Carrera, Pablo de la Vega, and Fernando Toledo12 Fiscal and monetary policy challenges after COVID-19:The Argentinean case 206Damián Pierri13 International reserves, repurchase agreements, and theBrazilian monetary policy 220Sylvio Antonio Kappes14 External debt and economic growth in Latin America andthe Caribbean 230Alfredo Schclarek CurutchetIndex 256

Edited by Fernando Toledo, Professor of International Monetary Economics, Faculty of Economic Sciences, University of La Plata, Argentina and Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Editor-in-Chief, Challenge, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute

‘Monetary Policy and Challenges in Latin America manages to articulate a set of chapters around dialoguing themes, identifiable controversies, and clear messages. They address topics that have always been of interest to the research agenda of the region and require constant updating: criticism of the mainstream, study of the concrete specificities of Latin American economies, pursuit of alternative economic policies, and commitment to structurally addressing the economic and social ills imposed on the region by its peripheral position.’

• Contents:Introduction to Monetary Policy Challenges in Latin America xxiFernando Toledo and Louis-Philippe RochonPART I ALTERNATIVE VIEWS ABOUT CENTRALBANKS AND MONETARY POLICY IN LACS1 Assessing the new “integrated policy framework”:a counterfactual analysis of the case of Argentina 2Sebastián Valdecantos2 Macroeconomic policy under a managed floatingexchange rate regime: a critical appraisal of theinternational currency hierarchy literature 16Simone Deos and Enzo GerioniPART II MONETARY POLICY TRANSMISSIONCHANNELS IN LACS3 Inflation targeting in open economies: the contradictionsof determinacy and stability 34Esteban Pérez Caldentey and Matías Vernengo4 Limitations of monetary policies in open developingeconomies: external capital inflows and sterilisation policies 59Noemí Levy Orlik5 Global financial cycle and monetary policy rules:a neo-Kaleckian model for emerging markets anddeveloping economies 78Gabriel Michelena and Fernando ToledoPART III MONETARY POLICIES AND EXCHANGE RATES IN LACS6 Exchange rate management in Latin America: towards themaking of a policy target exchange rate 97Daniel Pérez-Ruiz, Gary Dymski, and Annina Kaltenbrunner7 Real exchange rates, growth, and inflation targeting 117Nelson Barbosa Filho8 When are devaluations more contractionary? A quantileVAR estimation for Argentina 132Gabriel Montes-Rojas and Nicolás BertholetPART IV MONETARY POLICIES, INTERNATIONALRESERVES, AND SUSTAINABLE FINANCE IN LACS9 Latin American Reserve Fund: Latin America’salternative to the IMF? 150William N. Kring10 Climate change, monetary policy, and green finance inLatin America: the open economy dimension 168Pablo G. Bortz and Nicole ToftumPART V MONETARY POLICIES, CENTRAL BANKS,INCOME INEQUALITY, AND FISCAL POLICIES IN LACS11 Fiscal responses to income inequality surges. A panelestimation for Emerging Market and DevelopingEconomies (EMDEs) 185Jorge Carrera, Pablo de la Vega, and Fernando Toledo12 Fiscal and monetary policy challenges after COVID-19:The Argentinean case 206Damián Pierri13 International reserves, repurchase agreements, and theBrazilian monetary policy 220Sylvio Antonio Kappes14 External debt and economic growth in Latin America andthe Caribbean 230Alfredo Schclarek CurutchetIndex 256