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Trade and Exchange Rate Regime Coherence: Implications for Integration in the Americas

20 Pages Posted: 6 Feb 2010  

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH

Date Written: 2002

Abstract

Latin America’s trade relationships have been severely strained by the series of uncoordinated currency depreciations within the region since the Asian Crisis spilled over into Brazil in 1999 and by large swings in G-3 exchange rates. Large depreciations, whether forced by capital markets or unilaterally effected for competitive trade reasons, are equivalent to steep increases in tariffs facing trading partners; they damage trade relationships and distort trade-oriented economic growth. The sources of the unfolding regional crisis and its implications for intra-regional trade as well as trade with major external trading partners are examined. Implications for future regional economic integration are drawn.

Keywords: Capital Flows, Contagion, Exchange Rates, Finance, Trade, Western Hemisphere

JEL Classification: F15, F33, F36

Suggested Citation

Ciuriak, Dan, Trade and Exchange Rate Regime Coherence: Implications for Integration in the Americas (2002). Estey Centre Journal of International Law & Trade Policy, Vol. 3, No. 2, pp. 256-275, 2002. Available at SSRN: https://ssrn.com/abstract=1548926

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

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