External Adjustment and Equilibrium Exchange Rate in Brazil

 
Author/Editor: Paiva, Claudio
 
Publication Date: October 01, 2006
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper investigates the factors behind the significant improvement in Brazil's external accounts and wide fluctuations of the real exchange rate since the floating of the real in 1999. Particular attention is devoted to the strong appreciation of the real from 2003-05. Econometric estimates of of behavioral equilibrium exchange rate (BEER) model for Brazil show that most of this appreciation was an equilibrium response to improved economic fundamentals.
 
Series: Working Paper No. 06/221
Subject(s): Exchange rates | Brazil | Floating exchange rates | Current account

Author's Keyword(s): Equilibrium exchange rate | real exchange rate | current account
 
English
Publication Date: October 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006221 Pages: 22
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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