Monetary policy, default risk and the exchange rate

In a country with high probability of default, higher interest rates may render the currency less attractive if sovereign default is costly. This paper develops that intuition in a simple model and estimates the effect of changes in interest rates on the exchange rate in Brazil using data from the dates surrounding the monetary policy committee meetings and the methodology of identification through heteroskedasticity. Indeed, we find that unexpected increases in interest rates tend to lead the Brazilian currency to depreciate. It follows that granting more independence to a central bank that focus solely on inflation is not always a free-lunch.

Trade rules and exchange rate misalignments : in search for a WTO solution e medidas compensatórias

The debate on the link between trade rules and rules on exchange rates is raising the attention of experts on international trade law and economics. The main purpose of this paper is to analyze the impacts of exchange rate misalignments on tariffs as applied by the WTO – World Trade Organization. It is divided into five sections: the first one explains the methodology used to determine exchange rate misalignments and also presents its results for Brazil, US and China; the second summarizes the methodology applied to calculate the impacts of exchange rate misalignments on the level of tariff protection through an exercise of “misalignment tariffication”; the third examines the effects of exchange rate variations on tariffs and their consequences for the multilateral trading system; the fourth one creates a methodology to estimate exchange rates against a currency of the World and a proposal to deal with persistent and significant misalignments related to trade rules. The conclusions are present in the last section

Corporate risk management and exchange rate volatility in Latin America

Includes bibliography

How optimal are the extremes?: Latin American exchange rate policies during the Asian crisis

Includes bibliography

Regional exchange rate arrangements: the European experience

Includes bibliography

Enfoque monetario del tipo de cambio = Monetary approach to the exchange rate

Incluye Bibliografía

Regional integration and the issue of choosing an appropriate exchange-rate regime in Latin America

Includes bibliography

Andean exchange-rate regimes, 1994-2003: a brief for stable but flexible" regimes"

Includes bibliography

Corporate risk management and exchange rate volatility in Latin America

Includes bibliography

How optimal are the extremes?: Latin American exchange rate policies during the Asian crisis

Includes bibliography

The monetary crisis, dollarization and the exchange rate

Includes bibliography

The impact of exchange-rate and trade policy on export performance in the 1980s

Includes bibliography

Exchange rate regimes and macroeconomic performance in Argentina, Brazil and Mexico

Includes bibliography

The competitive real exchange-rate regime, inflation and monetary policy

Includes bibliography