External Adjustment and Equilibrium Exchange Rate in Brazil

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...

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Bibliographic Details
Main Author: Paiva, Claudio
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a External Adjustment and Equilibrium Exchange Rate in Brazil  |c Claudio Paiva 
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300 |a 22 pages 
651 4 |a Brazil 
653 |a Current account 
653 |a Interest rates 
653 |a Foreign Exchange 
653 |a Exports and Imports 
653 |a Real effective exchange rates 
653 |a International economics 
653 |a Real interest rates 
653 |a Short-term Capital Movements 
653 |a Currency 
653 |a Exchange rates 
653 |a Real exchange rates 
653 |a Banks and Banking 
653 |a Current Account Adjustment 
653 |a Balance of payments 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Finance 
653 |a Foreign exchange 
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520 |a 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