Large Devaluations and the Real Exchange Rate

Ariel Burstein, Martin Eichenbaum and Sergio Rebelo ()

No 10986, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we argue that the primary force behind the large drop in real exchange rates that occurs after large devaluations is the slow adjustment in the price of nontradable goods and services. Our empirical analysis uses data from five large devaluation episodes: Argentina (2001), Brazil (1999), Korea (1997), Mexico (1994), and Thailand (1997). We conduct a detailed analysis of the Argentina case using disaggregated CPI data, data from our own survey of prices in Buenos Aires, and scanner data from supermarkets. We assess the robustness of our findings by studying large real-exchange-rate appreciations, medium devaluations, and small exchange-rate movements.

JEL-codes: F31 (search for similar items in EconPapers)
Date: 2004-12
New Economics Papers: this item is included in nep-ifn
Note: EFG IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Published as Ariel Burstein & Martin Eichenbaum & Sergio Rebelo, 2005. "Large Devaluations and the Real Exchange Rate," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 742-784, August.

Downloads: (external link)
http://www.nber.org/papers/w10986.pdf (application/pdf)

Related works:
Journal Article: Large Devaluations and the Real Exchange Rate (2005)
Working Paper: Large Devaluations and the Real Exchange Rate (2004)
Working Paper: Large Devaluations and the Real Exchange Rate (2004)
Working Paper: Large Devaluations and the Real Exchange Rate (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:10986

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w10986

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().