External Adjustment and Equilibrium Exchange Rate in Brazil

Author/Editor:

Claudio A Paiva

Publication Date:

October 1, 2006

Electronic Access:

Free Full text (PDF file size is 493 KB).Use the free Adobe Acrobat Reader to view this PDF file

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:

English

Publication Date:

October 1, 2006

ISBN/ISSN:

9781451864816/1018-5941

Stock No:

WPIEA2006221

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

22

Please address any questions about this title to publications@imf.org