The Brazilian experience in managing interest-exchange rate nexus

Ricardo Carneiro and Pedro Rossi ()

No 1302, Competence Centre on Money, Trade, Finance and Development from Hochschule fuer Technik und Wirtschaft, Berlin

Abstract: This paper addresses four main questions: firstly, it discusses some theoretical background related to the interest-exchange rate nexus; secondly, it makes an attempt to explain why the interest rate in Brazil is so high, examining briefly the main explanations for it; thirdly, it describes Brazil’s foreign exchange markets, their size and hierarchy; and lastly, it explains the carry trade dynamics considering the institutionalism of the Brazilian foreign exchange market and also the government policies envisioned to curb it.

Keywords: working paper; daadpartnership; finance-and-trade (search for similar items in EconPapers)
JEL-codes: E44 E52 F4 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-05
New Economics Papers: this item is included in nep-lam and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Berlin Working Papers on Money, Finance, Trade and Development, May 2013

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Persistent link: https://EconPapers.repec.org/RePEc:mtf:wpaper:1302

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