The Aftermath Of Appreciations

Ilan Goldfajn and Rodrigo O. ValdŽs

The Quarterly Journal of Economics, 1999, vol. 114, issue 1, pages 229-262

Abstract: This paper empirically analyzes a broad range of real exchange rate appreciation episodes. The objective is twofold. First, the paper studies the dynamics of appreciations, using a sample that is not limited to cases that end in crisis (or devaluation). Second, the paper analyzes the mechanism by which overvaluations are corrected. In particular, for various degrees of misalignment we calculate the proportion of the reversions that occur through nominal devaluations rather than through cumulative inflation differentials. The overall conclusion is that in most cases large and medium appreciations are reversed with nominal devaluations. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 1999
References: Add references at CitEc
Citations View citations in EconPapers (59) Track citations by RSS feed

Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 990201)114:1L.229;1- (text/html)
Access to full text is restricted to subscribers.

Related works:
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: http://EconPapers.repec.org/RePEc:tpr:qjecon:v:114:y:1999:i:1:p:229-262

Ordering information: This journal article can be ordered from
http://mitpress.mit. ... me.tcl?issn=00335533

Access Statistics for this article

The Quarterly Journal of Economics is edited by Robert J. Barro, Edward L. Glaeser and Lawrence F. Katz

More articles in The Quarterly Journal of Economics from MIT Press
Series data maintained by Karie Kirkpatrick ().