Characterizing real exchange rate misalignments in Latin America: the case of Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Mexico, Peru, Uruguay and Venezuela

This research finds that the persistence of the real exchange rate misalignment varies between Latin-American countries and for different real exchange rate measures (the purchasing power parity concept, the wholesale/consumer price indices and the relative tradable to non-tradable price).Our result...

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Autor principal: Zarzosa Valdivia, Fernando
Formato: conferenceObject
Lenguaje:Inglés
Publicado: 2022
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Acceso en línea:http://hdl.handle.net/11086/22211
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Sumario:This research finds that the persistence of the real exchange rate misalignment varies between Latin-American countries and for different real exchange rate measures (the purchasing power parity concept, the wholesale/consumer price indices and the relative tradable to non-tradable price).Our results show that in most of the cases, the autoregressive coefficients of order oneand two are positive and negative, respectively, which reflects a pattern showing an up and down movement in the adjustment process. We also find heterogeneity on the necessary months in which the misalignment (or the 50% of it) disappears after a shock has hit the economy.