Current equilibrium exchange rate: methodology and estimations for Latin American countries

Bresser-Pereira, Luiz Carlos; Marconi, Nelson; PORTO, TIAGO; Araújo, Eliane; LEAO, RAFAEL

doi:10.1590/0101-31572022-3436

Cited by 5 publications

(4 citation statements)

References 14 publications

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“…Berman et al (2012) found that high-productivity exporters with a low demand elasticity respond to RER depreciation by increasing mark-ups more than export volumes, whereas Chatterjee, Dix-Carneiro, and Vichyanond (2013) showed that high-productivity firms increase the prices of their products in the same scenario. Bresser-Pereira et al (2022) found a high negative correlation between exchange rate misalignments and current account deficits. Iasco-Pereira and Missio (2022) found that a competitive RER favors the manufacturing industry and is associated with a more complex and competitive structure.…”

Section: Literature Reviewmentioning

confidence: 93%

A Panel Var Analysis of the Dynamic Impact of Undervaluation on Economic Growth in Latin American Countries

Chavez

2023

Rev. econ. contemp.

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This study analyzes the dynamic effects of undervaluation on the economic growth per capita of Latin American countries from 1980 to 2018. To estimate these effects, a panel vector autoregressive (PVAR) model was used with the System GMM as its estimator. The undervaluation variable is created from different measures of real exchange rates. In addition, various measures of GDP per capita were used to calculate economic growth per capita. Macroeconomic and human capital variables were included to control for the different undervaluation spread channels on economic growth per capita. Results show a positive effect depending on the definition of the real exchange rate used to calculate the undervaluation. Results also include the Granger causality test, a stability test, and impulse response graphs that project the response of per capita economic growth to an undervaluation shock.

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Section: Literature Reviewmentioning

confidence: 93%

A Panel Var Analysis of the Dynamic Impact of Undervaluation on Economic Growth in Latin American Countries

Chavez

2023

Rev. econ. contemp.

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“…Issues related to exchange rate dynamics are also relevant the New Developmentalism Approach (Bresser-Pereira and Gala, 2010;Bresser-Pereira, 2012;Bresser-Pereira et al, 2014), which emphasizes the long-run currency appreciation problems brought by an economic expansion based on a foreign saving strategy and/or by the so-called Dutch Disease. This line of research highlights, among other aspects, the importance of keeping an industrial equilibrium exchange rate, so that a high technology industrial sector can be competitive globally and domestically (Bresser-Pereira et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Exchange Rate Behavior in the BRICS

VIEIRA,

SILVA

2024

Brazil. J. Polit. Econ.

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This article aims to investigate the behavior of exchange rate in the BRICS countries, with an emphasis on exchange rate passthrough and exchange rate determination empirical models. By applying the ARDL Bounds Testing Approach Methodology, from January 2005 to December 2019. Our main results show that: i) there is a long run cointegration among the variables analyzed for all estimated models; ii) there is a very slow speed of adjustment towards the long run equilibrium; iii) there is evidence of exchange rate passthrough to inflation mainly in the long run, but not as strong as before; iv) there is no evidence of exchange rate overshooting; v) international reserve accumulation can be considered a partial explanation for the evidence of no exchange rate overshooting.

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“…Nesse corpo teórico, a taxa de câmbio é considerada uma variável central, a qual deve ser conservada em nível competitivo para manter a competitividade econômica das empresas produtoras de bens comercializáveis não commodities e que são tecnicamente eficientes. Importante acrescentar também que, ao longo dos anos, foi desenvolvida e disseminada uma metodologia empírica para se compreender tanto os determinantes da taxa de câmbio, à O papel da taxa de câmbio na Teoria do Novo-Desenvolvimentista Carmem Feijo | Eliane Araújo luz da teoria proposta, quanto o nível de preço macroeconômico correto e, com isso, adequadamente analisar o desalinhamento cambial (Bresser-Pereira et al, 2022e Marconi et al, 2021.…”

Section: Introductionunclassified

O papel da taxa de câmbio na Teoria Novo-Desenvolvimentista

Feijo,

Araujo

2024

CGPC

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O presente artigo destaca a relevância da contribuição do professor Bresser-Pereira ao colocar a Teoria Novo-Desenvolvimentista como a referência para pautar o debate macroeconômico em economias em desenvolvimento e, em particular, ao colocar a determinação da taxa real de câmbio como variável-chave para explicar a dinâmica de crescimento e desenvolvimento ao longo do tempo. Para tanto, o artigo inicialmente resume a abordagem de Bresser-Pereira para a determinação da taxa de câmbio, uma de suas contribuições mais originais para a Teoria do Novo-Desenvolvimento. Na sequência, discute a relação entre taxa de câmbio e taxa de juros para explicar como a autonomia de política é restrita em economias em desenvolvimento integradas financeiramente. Por fim, o artigo conclui que a Teoria Novo- Desenvolvimentista oferece insights relevantes e originais para o entendimento da trajetória de crescimento de economias em desenvolvimento integradas financeiramente.

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Current equilibrium exchange rate: methodology and estimations for Latin American countries

Cited by 5 publications

References 14 publications

A Panel Var Analysis of the Dynamic Impact of Undervaluation on Economic Growth in Latin American Countries

A Panel Var Analysis of the Dynamic Impact of Undervaluation on Economic Growth in Latin American Countries

Exchange Rate Behavior in the BRICS

O papel da taxa de câmbio na Teoria Novo-Desenvolvimentista

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