The Real Exchange Rate and Reserve Management: Latin America in the 1990s

Abstract

The ending of apartheid in South Africa has led to the start of a new era. The obstacles to integration into the world economy have been removed and the ability to take advantage of this opportunity depends mainly on what South and Southern Africans can do for themselves. The Latin American experience of the 1990s, with large capital inflows and appreciation of the currencies, offers some pertinent lessons.

This paper draws on previous research by the author for the Group of Thirty in Washington, D.C. The author thanks Pablo Garcia for efficient assistance and Gavin Maasdorp for insightful suggestions.