This article assesses the impacts of Brazil's exchange-based stabilization plan (Plano Real) on the country's external financial fragility and discusses alternative exchange policies to overcome the external vulnerability. An index for external financial fragility is applied to a time series of...

This paper examines the latest stabilization effort in Argentina, the Cavallo Plan. The analytical framework is the tradeable-non tradeable textbook model, extended to the effect of real wages on aggregate demand. A Phillips-curve description of inflation is also included. It is shown that, by...