Issue 87 of Economic Essays, the academic journal of the Central Bank of the Argentine Republic (BCRA) brings together four studies on inflation targeting, exchange controls, external over-indebtedness and fiscal dominance. The edition is available in open access through Open Journal Systems (OJS), the journal’s publishing platform.
In the first paper, Resilience of Inflation Targeting Schemes: An Analysis of Differences in Differences of the COVID-19 Pandemic and the Russia-Ukraine Conflict, Merit Tejeda (Central Bank of Honduras) examines whether inflation-targeting economies showed a differential inflationary response during the global shocks of the COVID-19 pandemic and Russia’s invasion of Ukraine.
The remaining three papers reflect research awarded in the latest edition of the “Dr. Raúl Prebisch” Annual Economic Research Award, organized by the BCRA, in the “Student” and “Young Professionals” categories.
In The Macroeconomics of Exchange Controls, Juan Ignacio Domínguez (National University of Tucumán) develops a model to analyze the macroeconomic consequences of capital controls in an environment in which the government finances its deficit through the expansion of domestic credit and maintains a fixed exchange rate.
In Linking Public Consumption with Private Over-Indebtedness, Franco Degiuseppe (Universidad Torcuato Di Tella) studies how public consumption can contribute to the external over-indebtedness of the private sector through its effects on the real exchange rate in the presence of debt constraints.
Finally, in Fiscal Dominance, Shocks and Currency Distribution of Sovereign Debt: The Case of a Small and Open Economy, Juan Pablo Di Iorio (Universidad de San Andrés) extends the results of the Fiscal Theory of the Price Level to a neo-Keynesian model of a small and open economy and shows that fiscal dominance can help explain the price puzzle and the exchange rate response puzzle.
Economic Essays keeps the reception of academic articles permanently open. Those wishing to contribute to the debate on macroeconomic theory and policy, currency and finance can submit their work through OJS, where submission and evaluation guidelines are also available.
