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http://dspace.mediu.edu.my:8181/xmlui/handle/123456789/4118| Title: | Cyclical fluctuations in Brazil's real exchange rate: the role of domestic and external factors (1988-95) |
| Keywords: | capital flows real exchange rate external shocks |
| Issue Date: | 30-May-2013 |
| Publisher: | Fundação Getúlio Vargas |
| Description: | This paper examines the behavoir of capital inflows and the real exchange rate in Brazil during the period 1988-95. The first part describes the analytical framework. The second part estimates (using monthly data) a near-VAR linking capital flows, changes in domestic and foreign nominal interest rates, changes in the expected depreciation rate, the government spending-output ratio, and changes in the real exchange rate. Generalized variance decompositions indicate that world interest rate shocks explain only a fraction of medium-term fluctuations in capital flows, whereas fluctuations in the real exchange rate are driven mostly by its own innovations. Generalized impulse response functions show that a reduction in the world interest rate leads on impact to a fall in domestic interest rates, a reduction in the rate of nominal exchange rate appreciation, a capital inflow, and a depreciation of the real exchange rate. |
| URI: | http://koha.mediu.edu.my:8181/jspui/handle/123456789/4118 |
| Other Identifiers: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402002000100002 http://www.doaj.org/doaj?func=openurl&genre=article&issn=00347140&date=2002&volume=56&issue=1&spage=47 |
| Appears in Collections: | Business and Economics |
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