Financial capital continues to dominate Western economic organisations, despite major financial and economic crises. While these have not affected Latin American countries in the same way, other economic problems emerged after the reversion of loose monetary policies that debilitated the export-led growth model. This book discusses the issue of the financialised globalisation model in Latin America, looking at the region’s relationship with the international market.
This edited collection is divided into three main sections. The first section discusses regional trends highlighting issues of trade and payments in financialised economies, the impact on deindustrialisation, its effect on inequality, external capital movements and monetary policies. The second section analyses the failure of comparative advantages of the export-led model in Colombia, Argentina and Mexico. Finally, the last section deals with the growth of financial balance sheets in small and developing economies such as Chile; how growth, investment and big corporation evolution were affected in Brazil and Mexico; and the effects of foreign exchange activity in Mexico. Through these discussions, this book aims to deepen the understanding of the crisis of financialisation and the export-led model, raising the question of whether it is possible for this model to continue or if it requires major readjustments to unfold economic growth.
This book provides a distinctive analysis of the financialisation mechanisms in developing countries in order to emphasise affinities and differences between the countries of the region in productive and financial terms. It will be of great interest to economic and social science scholars and students, to journalists specialising on economic and development issues, and, more importantly, to policy makers.
"This is a timely and much needed effort. Leaders in both Europe, North America, Africa and elsewhere, need to learn from the experience of Latin America regarding the negative consequences of insufficiently regulated financialization. The editors of this volume are making a significant contribution to debates about these issues by making this work available to the English speaking public.", Fernando Leiva, Department of Latin American and Latino Studies, University of California Santa Cruz, USA
Introduction. Section I: Regional Trends. 1. Multilateralism and Regional Trade and Payments, Jan Toporowski. 2. Capital Inflows, Current Account Deficits and Deindustrialization in Latin American Commodity-Producing Economies, Thomas Goda and Photis Lysandrou. 3.Limits and Perspectives of Export-Led Growth Model and Foreign Direct Investment in Latin America and Mexico, Guadalupe Moreno Huerta y Luis Kato. 4.Internationalisation, Big Corporations and Capital Accumulation in The Latin American Experience, Jorge Bustamante. 5.Financialisation and Economic Inequality in Latin America, Hanna Szymborska. 6. The Effect of Inflation Target Regimes in Commodities-Based, Financialised Economies on Income Growth and Distribution in Latin America, Santiago Capraro. Section II: The Failure of Comparative Advantages. 7.Structural Change in Colombia: From Import Substitution to Exports-Led Growth Illusion, Diego Guevara, Gonzalo Cómbita and Camilo Guevara. 8. Financialisation of Commodities, Reserve Accumulation and Debt in Argentina, Alan Cibils and Cecilia Allami. 9. A Sectoral Analysis of Mexico’s External Economic Opening (1982-2016), Abelardo Marina and Sergio Cámara. 10. The Natural Resource Curse and Financial Development Of Mexico, Alicia Puyana Mutis and Katya Pérez-Guzmán. Section III: The Growth of Financial Balance Sheets. 11. Financialisation in Small, Open Developing Economies: The Case of Chile, Esteban Pérez Caldentey and Nicole Favreau Negront. 12. Financialisation, Growth and Investment In Brazil, Luiz Fernando de Paula and Tiago R. Meyer. 13. Financial Structure and Big Corporations in Scenarios Of Increasing Indebtedness in Mexico, Gabriel Gomez Ochoa. 14. Financial Capital Flows and Forex Activities in Mexico: Finance or Specualtion?, Noemi Levy. 15. Exchange Rate Policy Restrictions on a High Volatility Environment: The Mexican Currency, Nora Ampudia Márquez and Luis Raúl Rodríguez Reyes
The 2007-8 Banking Crash has induced a major and wide-ranging discussion on the subject of financial (in)stability and a need to revaluate theory and policy. The response of policy-makers to the crisis has been to refocus fiscal and monetary policy on financial stabilisation and reconstruction. However, this has been done with only vague ideas of bank recapitalisation and ‘Keynesian’ reflation aroused by the exigencies of the crisis, rather than the application of any systematic theory or theories of financial instability.
Routledge Critical Studies in Finance and Stability, edited by Jan Toporowski from SOAS, University of London covers a range of issues in the area of finance including instability, systemic failure, financial macroeconomics in the vein of Hyman P. Minsky, Ben Bernanke and Mark Gertler, central bank operations, financial regulation, developing countries and financial crises, new portfolio theory and New International Monetary and Financial Architecture.