The Macroeconomics of Latin America

Juan F Rubio-Ramirez and Diego Vilan

No 153, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: We study why fluctuations of the real exchange rate are so volatile with respect to other macroeconomic variables for latin american economies. We use a Bayesian approach to estimate a two-country New Keynesian Open Economy Macroeconomics using data for several latin american economies, and perform model comparisons to study the importance of departing from the law of one price, complete markets assumptions, and perfect pass-through to match the relationship between real exchange rate volatility and other macroeconomic variables volatility. We find that allowing for incomplete markets and imperfect pass-through helps the model to better fit the relative volatility of real exchange rate with respect to some macroeconomic variables for several latin american economies

Date: 2006-07-04
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sce:scecfa:153

Access Statistics for this paper

More papers in Computing in Economics and Finance 2006 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().