Macroeconomic Coordination in Latin America Does It Have a Future?

• Published in: Regional Financial Cooperation p. 164
• Main Authors: JOSÉ LUIS MACHINEA, GUILLERMO ROZENWURCEL
• Format: Book Chapter
• Language: English
• Published: United States Brookings Institution Press and Economic Commission for Latin America and the Caribbean (ECLAC) 29-08-2007; Brookings Institution Press
• Subjects: Capital mobility; Countries; Economic conditions; Economic fluctuations; Economic policy; Economics; European cooperation; European integration; Exchange rates; Floating exchange rates; Foreign exchange; Human geography; International cooperation; International economics; International finance; International politics; International relations; International trade; Macroeconomic policy; Macroeconomics; Political geography; Political integration; Political processes; Political science; Politics; Regional cooperation; Social sciences
• ISBN: 9780815764199; 0815764197

For most developing countries, open regionalism has emerged as a sensible response to the ongoing turbulent and asymmetric process of economic globalization: it avoids the huge costs associated with both isolationism and outright liberalization. Moreover, the successful experience of the countries that now form the European Union has made regional integration an increasingly attractive option for the developing world.
Whenever regional integration is intended to go beyond just a free-trade agreement, macroeconomic coordination becomes a key issue. From a theoretical standpoint, the underlying idea is simple: when economies are interdependent, the events that take place and the policies implemented in