Financial and monetary cooperation in south america: making the case for a deeper integration among the unasur countries
Journal Title: Conjuntura Austral: journal of the Global South - Year 2015, Vol 6, Issue 31
Abstract
The international financial crisis and the ‘great recession’ have substantially altered the dynamic process of the international economy. On the one hand, it has accentuated the asymmetry that exists between the economic size of emerging countries and their current role in the international monetary system (IMS). On the other hand, there is little space for substantial reforms in the global financial architecture inherited from the post-War period, particularly regarding to the Bretton Woods Institutions. In view of these developments, regional integration has become a second best strategy for the developing countries, specifically for South America countries. In this article, we investigate the existing mechanisms of monetary and financial cooperation in South America and question if they can ensure progress in regional integration. The historical and institutional analysis of the existing mechanisms in South America reveals a fragmentation of the region. Although the region has an extensive network of mechanisms for regional monetary and financial cooperation, such mechanisms are linked to different cooperation agreements. At the same time, our findings suggest that there is some evidence of macroeconomic convergence in UNASUR that justify a deeper integration among them. Thus, this article proposes the creation of a Regional Market Maker to UNASUR to boost trade and financial relations, discipline and standardize macroeconomic policies and prevent any disruptive situation resulting from financial and exchange rate crises.
Authors and Affiliations
Fernando Ferrari-Filho, Luiza Peruffo
Keywords
Related Articles
- EP ID EP675572
- DOI https://doi.org/10.22456/2178-8839.56749
- Views 173
- Downloads 0
The border issue between Guyana and Venezuela and the South American integration
This article intends to analyze the border issue between Guyana and Venezuela, trying to detect new mechanisms to solve it. These two countries take part in the regional integration process materialized by the South Amer...
Rethinking China’s role in the United Nations Peace Operations: responding to the challenges from the Global South?
Considering the 50th anniversary of the accession of the People’s Republic of China to the United Nations (UN), this article aims at exploring the change in the country’s position towards the Security Council, analyzing...
Crisis in Syria (2011-2013): A Multifactorial Analysis
After more than two years since the beginning of the Syrian uprising, the clash between government and opposition remains intense. The difficulty of breaking the impasse between the actors involved is the complex network...
A UNASUR strategy for mining and development
The article analyzes the conditions under which the UNASUR could facilitate a regional strategy for the use of mining for development. Necessary conditions for this are the strengthening of states’ capacities of states t...
The Muslim Brotherhood in Syria
The objective of this paper is to draw briefly the history of the Muslim Brotherhood in Syria and its relation with the Syrian politics. It will be studied the organization’s foundation in the 1930’s, the radicalization...