Issue 87 of Ensayos Económicos (Economic Essays), the academic journal of the BCRA, features four research papers on inflation targeting, exchange controls, external overborrowing and fiscal dominance. The edition is available in open access through Open Journal Systems (OJS), the journal’s publishing platform.
In the first paper, Inflation Targeting Resilience: A Difference-in-Differences Analysis of the COVID-19 Pandemic and the Russia–Ukraine Conflict, Merit Tejeda (Central Bank of Honduras) examines whether economies operating under inflation targeting frameworks displayed a differential inflation response during the global shocks of the COVID-19 pandemic and Russia’s invasion of Ukraine.
The remaining three papers reflect award-winning research works from the latest edition of the “Dr. Raúl Prebisch” Economic Research Annual Award, organized by the BCRA, in the “Students” and “Young Professionals” categories.
In The Macroeconomics of Exchange Controls, Juan Ignacio Domínguez (Universidad Nacional de Tucumán) develops a model to analyze the macroeconomic consequences of capital controls in an environment where the government finances its deficit through domestic credit expansion while maintaining a fixed exchange rate.
In Linking Public Consumption to Private Overborrowing, Franco Degiuseppe (Universidad Torcuato Di Tella) examines how public consumption may contribute to private external overborrowing through its effects on the real exchange rate under borrowing constraints.
Finally, in Fiscal Dominance, Shocks, and the Currency Distribution of Sovereign Debt: the Case of a Small Open Economy, Juan Pablo Di Iorio (Universidad de San Andrés) extends the results of the fiscal theory of the price level to a new Keynesian small open economy model, and shows that fiscal dominance can help explain the price puzzle and the exchange rate response puzzle.
Ensayos Económicos welcomes academic paper submissions on an ongoing basis. Those wishing to contribute to the discussion on macroeconomic theory and policy, currency and finance may submit their work through OJS, where submission and evaluation guidelines are also available.
