EXCHANGE RATE POLICY MANAGEMENT IN CONDITIONS OF CURRENCY ABUNDANCE*

One of the most relevant macroeconomic phenomena of recent years has been a persistent revaluation of the peso. This paper puts forward the hypothesis that peso revaluation has been an equilibrium pheno-menon, i.e. explained by permanent factors, and although measures have been taken to modify the trajectory of the real exchange rate (and others could be taken), in practice, the benefits of these measures have been dubious, and they probably only slightly delay the do-wnward trend. In view of this, the authors propose concentrating efforts on making peso revaluation compatible with the least possible resource allocation costs, while enhancing the efficiency and produc-tivity of the different economic activities. Similarly, they argue that it is vital to confront this phenomenon realistically, as its dynamic aspects will necessarily lead to the contraction of some productive activities and the possible disappearance of others. However, they conclude that this should not be perceived as negative, but rather as one of the signs of development. w