Abstract
Growth has been frustratingly slow in Latin America, notwithstanding a decade and a half of rather intense reforms (Ocampo, 2005). In this period, growth of the region has diverged from that of the major economy of the world and has moved slower than the world average (Ffrench-Davis, 2005). The macroeconomic environment has been one crucial variable underlying both a low capital formation and great instability of economic activity.
The author is grateful to Ricardo Ffrench-Davis, Esteban Jadresíc, Felipe Jiménez, Andrés Reinstein, Salvador Valdés and participants in two Seminars organized by ECLAC in 2002 and 2003, for their comments and suggestions, and to Hermann González for his research and statistical support.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Akerloff, G. (1970), “The market for lemons: quality uncertainty and the market mechanism”, Quarterly Journal of Economics, August.
Campbell, J. and R. Shiller (1996), “A Scorecard for indexed government debt”, NBER Working Paper 5587, Cambridge, Mass.
Cifuentes, R., J. Desormeaux and C. González (2002), “Capital markets in Chile: from financial repression to financial deepening”, in The Development of Bond Markets in Emerging Economies, BIS Papers, No. 11, June.
Dornbusch, R. (1976), “Exchange rate dynamics”, Journal of Political Economy, December.
Fontaine, J. A. (1996), “Are there (good) macroeconomic reasons for limiting external investments by pension funds? The Chilean experience”, in S. Valdés-Prieto (ed.), The Economics of Pensions: Principles, Policies and International Experience, Chapter 9, Cambridge University Press, New York.
Ffrench-Davis, R. (2005), “Macroeconomics-for-growth under financial globalization: Four strategic issues for emerging economies”, in this volume.
— (2002), Economic Reforms in Chile: from Dictatorship to Democracy, University of Michigan Press, Ann Arbor.
— and H. Tapia (2001), “Three varieties of capital surge management in Chile”, in R. Ffrench-Davis (ed.), Financial Crises in “Successful” Emerging Economies, ECLAC/Brookings Institution Press, Washington, DC.
— and L. Villar (2005), “Real macroeconomic stability and the capital account in Chile and Colombia”, in this volume.
Harrison, P. (2002), “The impact of market liquidity in times of stress on the corporate bond market: pricing, trading, and availability of funds during heightened illiquidity”, BIS CGFS Conference Paper, No. 2, October.
J. P. Morgan (2002), “Pension fund reform: anticipating FX implications”, Global Foreign Exchange Research, New York, December 17.
Lee, J. Y. (2000), “The role of foreign investors in debt market development: conceptual frameworks and policy issues”, World Bank Working Paper, No. 2428.
Mihaljek, D., M. Scatigna and A. Villar (2002), “Recent trends in bond markets”, in The Development of Bond Markets in Emerging Economies, BIS Papers, No. 11.
Ocampo, J. A. (2005), “Overcoming Latin America’s growth frustrations: The macro and mesoeconomic links”, in this volume.
Reinstein, A. (2002), “Issues in building corporate money and bond markets in developing-market economies”, presented at the IDB Bond Market Development Workshop, November.
Reisen, H. (1997), “Liberalizing foreign investments by pension funds: positive and normative aspects”, Technical Paper, No. 120, OECD Development Center.
— and J. Williamson (1996), “Pension funds, capital controls, and macroeconomic stability”, in S. Valdés-Prieto (ed.), The Economics of Pensions: Principles, Policies and International Experience, Cambridge University Press, New York.
Sanhueza, G. (2001), “Chilean banking crisis of the 1980s: solutions and estimation of the costs”, in Documentos de trabajo del Banco Central de Chile, No. 104.
Stiglitz, J. and A. Weiss, (1981), “Credit rationing with imperfect information”, American Economic Review, 71.
Turner, P. (2002), “Bond markets in emerging economies: an overview of policy issues”, in The Development of Bond Markets in Emerging Economies, BIS Papers, No. 11.
Uthoff, A. (2001), “La reforma del sistema de pensiones y su impacto en el mercado de capitales”, in R. Ffrench-Davis and B. Stallings (eds.), Reformas, crecimiento y políticas sociales en Chile desde1973, ECLAC/LOM, Santiago.
Valente, J. R. (1991), “Inversión de los fondos de pensiones en el extranjero”, Documento de Trabajo, No. 159, Centro de Estudios Públicos, Santiago, August.
— (1988), “Diversificación internacional: una alternativa para las necesidades de inversion de los fondos de pensiones”, Documento de Trabajo, No. 109, Centro de Estudios Públicos, Santiago, December.
Vittas, D. (1998), “Institutional investors and securities markets: which comes first?”, paper presented at the World Bank ABCD LAC Conference, San Salvador, El Salvador, June.
Walker, E. (1998), “Mercado accionario, crecimiento económico y rentabilidad esperada: Evidencia chilena”, Cuadernos de Economía, 35 (104).
Zahler, R. (2003a), “Conclusions”, in E. Demaestri, F. de Mergelina and P. Masci, (eds.), Financial Crises in Japan and their Implications for Latin America, IDB publication, Washington DC.
— (2003b), Comment to “The China Syndrome or the Tequila Crisis”, by Francisco Gil Díaz, in J. A. González (ed.), Latin American Macroeconomic Reforms: The Second Stage, The University of Chicago Press.
— (2000), “Policy options for capital importers”, in P. B. Kenen and A. K Swoboda (eds.), Reforming the International Monetary and Financial System, IMF, Washington DC.
— (1998), “The Central Bank and Chilean macroeconomic policy in the 1990s”, CEPAL Review, No. 64, April.
— and M. Valdivia (1987), “Asimetrías de la liberalización financiera y el problema de las deudas interna y externa”, in C. Massad and R. Zahler (eds.), Deuda Interna y Estabilidad Financiera , CEPAL/GEL (Grupo Editor Latinoamericano), Buenos Aires.
Editor information
Editors and Affiliations
Copyright information
© 2006 Economic Commission for Latin America and the Caribbean
About this chapter
Cite this chapter
Zahler, R. (2006). Macroeconomic Stability and Investment Allocation of Domestic Pension Funds in Emerging Economies: The Case of Chile. In: Ffrench-Davis, R. (eds) Seeking Growth Under Financial Volatility. Palgrave Macmillan, London. https://doi.org/10.1057/9780230523036_3
Download citation
DOI: https://doi.org/10.1057/9780230523036_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-54538-4
Online ISBN: 978-0-230-52303-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)