Ancla Cambiaria y Crisis Financieras en América Latina

Abstract

This paper analyzes the effecis of financial reforms on an economy that relies on the exchange rate anchor by sketching four stages in the post-stabilization period as they relate to the banking system. It shows that the use of the exchange rate nominal anchor in conjunction with premature tiberalization of a poorly regulated and loosely supervised banking system creates macroeconomic dynamics that increase the likelihoad of a banking crisis. It then applies these stylized facts to explain banking crises in Argentina, Brazil, Chile, Ecuador and Mexico in the light of the main proposition of the paper.