EconPapers    
Economics at your fingertips  
 

A structuralist-Keynesian model for determining the optimum real exchange rate for Brazil’s economic development process: 1999-2015

André Nassif, Carmem Feijo and Eliane Araujo

Revista CEPAL, 2017

Abstract: The “optimum” long-run real exchange rate is the rate that will efficiently channel production resources into industries that generate and diffuse productivity gains in the economy as a whole and that will thus tend to speed up and sustain the economic development process. Rather than employing conventional models, a structuralist-Keynesian model is used to demonstrate, both theoretically and empirically, that the factors influencing the path of the long-run real exchange rate and the divergence of the observed real exchange rate from the “optimum” real exchange rate in terms of economic development are accounted for by both structural and short-term macroeconomic policy variables. Econometric estimates for 1999-2015 indicate that, following a prolonged period, beginning in late 2005, during which the Brazilian currency appreciated quite steeply, the real exchange rate in Brazil reached its “optimum” level in mid-January 2016.

Keywords: DESARROLLO ECONOMICO; AJUSTE ESTRUCTURAL; CONVERGENCIA ECONOMICA; MACROECONOMIA; TIPOS DE CAMBIO; POLITICA MONETARIA; MODELOS DE DESARROLLO; MODELOS ECONOMETRICOS; ECONOMIC DEVELOPMENT; STRUCTURAL ADJUSTMENT; ECONOMIC CONVERGENCE; MACROECONOMICS; FOREIGN EXCHANGE RATES; MONETARY POLICY; DEVELOPMENT MODELS; ECONOMETRIC MODELS (search for similar items in EconPapers)
JEL-codes: F30 F32 F39 (search for similar items in EconPapers)
Date: 2017-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://repositorio.cepal.org/handle/11362/43449

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: https://EconPapers.repec.org/RePEc:ecr:col070:43449

Access Statistics for this article

More articles in Revista CEPAL from Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL) Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteca CEPAL ().

 
Page updated 2020-06-11
Handle: RePEc:ecr:col070:43449