Targeting the Real Exchange Rate : Theory and Evidence /

This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained te...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Vegh Gramont, Carlos
مؤلفون آخرون: Calvo, Guillermo, Reinhart, Carmen
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1994.
سلاسل:IMF Working Papers; Working Paper ; No. 1994/022
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained temporarily. This can be achieved by means of higher inflation and/or higher real interest rates, depending on the degree of capital mobility. Evidence for Brazil, Chile, and Colombia supports the model's prediction that undervalued real exchange rates are associated with higher inflation.
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وصف مادي:1 online resource (50 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students