We examine how monetary policy has been conducted in four early adopters of Inflation Targeting: Brazil, Chile, Colombia and Peru. First, a Markov-Switching approach shows that while all countries exhibit considerable stability in their responses to the inflation and output gaps, most have...

Drawing from a unique data set comprising 2,893 banks and 152 countries over the period 1987 to 2000, we test whether the adoption of the Basel Accord by Latin American and Caribbean countries was responsible for the serious slowdowns in credit growth experienced by these countries. We find...

"This paper investigates the impact of workers´ remittances on equilibrium real exchange rates (ERER) in recipient economies. Using a small open economy model, it shows that standard "Dutch Disease" results of appreciation are substantially weakened or even overturned depending on: degree of...