Latin American Exchange Rate Policy in the Context of Low International Monetary Cooperation

Monetary cooperation in the context of the international monetary system following the Bretton Woods Agreements is low. Although the floating exchange rate regime promised less traumatic adjustments than its predecessor, several factors concurred obtaining opposite sign results. The greater flexibility of exchange rate policies in Latin America since the 2000s, as well as the accumulation of external reserves, helped to overcome the global financial crisis more efficiently than in past exogenous shocks. At the global level, the accumulation of reserves feeds the problem of global imbalance, while the existence of a multiplicity of exchange rate agreements makes the international monetary system a complex universe.