Factores Macroeconómicos en Retornos Accionarios Chilenos

Rodrigo Fuentes, Jorge Gregoire and Salvador Zurita
Authors registered in the RePEc Author Service: Cesar A. Calderon (ccalderon@worldbank.org)

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: We evaluate the growth effects of real exchange rate (RER) misalignments and their volatility. We calculate RER misaligments as deviations of actual RERs from their equilibrium for 60 countries over 1965-2003 using panel and time series cointegration methods. Using dynamic panel data techniques we find that RER misalignments hinder growth but the effect is non-linear: growth declines are larger, the larger the size of the overvaluation. Although large undervaluations hurt growth, small to moderate undervaluations enhance growth. However, we find that it is difficult to follow a pro-growth RER policy. Finally, growth is hampered by highly volatile RER misalignments.

Date: 2005-04
New Economics Papers: this item is included in nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/DTBC_315.pdf

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:chb:bcchwp:315

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo (dtbc@bcentral.cl).