In Venezuela, exchange controls affect firm competitiveness, market structures and, potentially, markups’ size. Also, legal rigidities in the labor market and an active setting of minimum wages by the government could produce other markup innovations. These exogenous variations in markups...

This paper assesses reserve management for determining optimal or minimal reserves for an oil producing economy under dynamic uncertainty. Reserve benchmarks are formulated taking into consideration the amount of contingent liabilities in foreign exchange that arises during currency crises....

The Venezuelan overnight market trades funds electronically similarly to limit order markets, but allows the imposition of credit lines, which inflict binding credit restrictions to some participants and introduce a peculiar bid-ask spread dynamic. The objective of this paper is to determine...

This paper uses a core-periphery model for measuring two systemic risk dimensions in the Venezuelan interbank market: connectivity and funding patterns between banks. The period analyzed is particularly interesting because it includes an episode of financial adjustment induced by regulators in...