The role of fundamentals on the persistence of real exchange rate misalignments in Argentina, Brazil, Chile, Mexico and Venezuela
This research analyses the behaviour of misalignments of the structural real exchange rate (relative tradable to non-tradable prices) and PPP real exchange rate (relative foreign to domestic prices adjusted by the nominal exchange rate) for Argentina, Brazil, Chile, Mexico and Venezuela. Both real e...
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| Formato: | conferenceObject |
| Lenguaje: | Inglés |
| Publicado: |
Asociación Argentina de Economía Política
2021
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| Acceso en línea: | http://hdl.handle.net/11086/19442 |
| Aporte de: |
| Sumario: | This research analyses the behaviour of misalignments of the structural real exchange rate (relative tradable to non-tradable prices) and PPP real exchange rate (relative foreign to domestic prices adjusted by the nominal exchange rate) for Argentina, Brazil, Chile, Mexico and Venezuela. Both real exchange rate misalignments exhibit an overshooting behaviour (monotonous, but not linear, adjustment), a pattern showing an up and down movement, when a temporary shock hits the economy. After a temporary (permanent, due to fundamentals) shock hits the economy, real exchange rate misalignment disappear between
10 to 17 (21 to 45) months. |
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