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

Leaf heliotropism in Styrax camporum Pohl from the Brazilian cerrado: distinct gas exchange and leaf structure, but similar leaf temperature and water relations

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

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

Includes bibliography

Leaf gas exchange and yield of three upland rice cultivars

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Brazilian exchange rate complexity: Financial crisis effects

With the financial market globalization, foreign investments became vital for the economies, mainly in emerging countries. In the last decades, Brazilian exchange rates appeared as a good indicator to measure either investors' confidence or risk aversion. Here, some events of global or national financial crisis are analyzed, trying to understand how they influenced the "dollar-real" rate evolution. The theoretical tool to be used is the Lopez-Mancini-Calbet (LMC) complexity measure that, applied to real exchange rate data, has shown good fitness between critical events and measured patterns. (C) 2011 Elsevier B.V. All rights reserved.

Exchange of nitrogen dioxide (NO 2) between plants and the atmosphere under laboratory and field conditions

Nitrogen is an essential nutrient. It is for human, animal and plants a constituent element of proteins and nucleic acids. Although the majority of the Earth’s atmosphere consists of elemental nitrogen (N2, 78 %) only a few microorganisms can use it directly. To be useful for higher plants and animals elemental nitrogen must be converted to a reactive oxidized form. This conversion happens within the nitrogen cycle by free-living microorganisms, symbiotic living Rhizobium bacteria or by lightning. Humans are able to synthesize reactive nitrogen through the Haber-Bosch process since the beginning of the 20th century. As a result food security of the world population could be improved noticeably. On the other side the increased nitrogen input results in acidification and eutrophication of ecosystems and in loss of biodiversity. Negative health effects arose for humans such as fine particulate matter and summer smog. Furthermore, reactive nitrogen plays a decisive role at atmospheric chemistry and global cycles of pollutants and nutritive substances.rnNitrogen monoxide (NO) and nitrogen dioxide (NO2) belong to the reactive trace gases and are grouped under the generic term NOx. They are important components of atmospheric oxidative processes and influence the lifetime of various less reactive greenhouse gases. NO and NO2 are generated amongst others at combustion process by oxidation of atmospheric nitrogen as well as by biological processes within soil. In atmosphere NO is converted very quickly into NO2. NO2 is than oxidized to nitrate (NO3-) and to nitric acid (HNO3), which bounds to aerosol particles. The bounded nitrate is finally washed out from atmosphere by dry and wet deposition. Catalytic reactions of NOx are an important part of atmospheric chemistry forming or decomposing tropospheric ozone (O3). In atmosphere NO, NO2 and O3 are in photosta¬tionary equilibrium, therefore it is referred as NO-NO2-O3 triad. At regions with elevated NO concentrations reactions with air pollutions can form NO2, altering equilibrium of ozone formation.rnThe essential nutrient nitrogen is taken up by plants mainly by dissolved NO3- entering the roots. Atmospheric nitrogen is oxidized to NO3- within soil via bacteria by nitrogen fixation or ammonium formation and nitrification. Additionally atmospheric NO2 uptake occurs directly by stomata. Inside the apoplast NO2 is disproportionated to nitrate and nitrite (NO2-), which can enter the plant metabolic processes. The enzymes nitrate and nitrite reductase convert nitrate and nitrite to ammonium (NH4+). NO2 gas exchange is controlled by pressure gradients inside the leaves, the stomatal aperture and leaf resistances. Plant stomatal regulation is affected by climate factors like light intensity, temperature and water vapor pressure deficit. rnThis thesis wants to contribute to the comprehension of the effects of vegetation in the atmospheric NO2 cycle and to discuss the NO2 compensation point concentration (mcomp,NO2). Therefore, NO2 exchange between the atmosphere and spruce (Picea abies) on leaf level was detected by a dynamic plant chamber system under labo¬ratory and field conditions. Measurements took place during the EGER project (June-July 2008). Additionally NO2 data collected during the ECHO project (July 2003) on oak (Quercus robur) were analyzed. The used measuring system allowed simultaneously determina¬tion of NO, NO2, O3, CO2 and H2O exchange rates. Calculations of NO, NO2 and O3 fluxes based on generally small differences (∆mi) measured between inlet and outlet of the chamber. Consequently a high accuracy and specificity of the analyzer is necessary. To achieve these requirements a highly specific NO/NO2 analyzer was used and the whole measurement system was optimized to an enduring measurement precision.rnData analysis resulted in a significant mcomp,NO2 only if statistical significance of ∆mi was detected. Consequently, significance of ∆mi was used as a data quality criterion. Photo-chemical reactions of the NO-NO2-O3 triad in the dynamic plant chamber’s volume must be considered for the determination of NO, NO2, O3 exchange rates, other¬wise deposition velocity (vdep,NO2) and mcomp,NO2 will be overestimated. No significant mcomp,NO2 for spruce could be determined under laboratory conditions, but under field conditions mcomp,NO2 could be identified between 0.17 and 0.65 ppb and vdep,NO2 between 0.07 and 0.42 mm s-1. Analyzing field data of oak, no NO2 compensation point concentration could be determined, vdep,NO2 ranged between 0.6 and 2.71 mm s-1. There is increasing indication that forests are mainly a sink for NO2 and potential NO2 emissions are low. Only when assuming high NO soil emissions, more NO2 can be formed by reaction with O3 than plants are able to take up. Under these circumstance forests can be a source for NO2.

Magnetization exchange with water and T(1) relaxation of the downfield resonances in human brain spectra at 3.0 T

The use of water suppression for in vivo proton MR spectroscopy diminishes the signal intensities from resonances that undergo magnetization exchange with water, particularly those downfield of water. To investigate these exchangeable resonances, an inversion transfer experiment was performed using the metabolite cycling technique for non-water-suppressed MR spectroscopy from a large brain voxel in 11 healthy volunteers at 3.0 T. The exchange rates of the most prominent peaks downfield of water were found to range from 0.5 to 8.9 s(-1), while the T(1) relaxation times in absence of exchange were found to range from 175 to 525 ms. These findings may help toward the assignments of the downfield resonances and a better understanding of the sources of contrast in chemical exchange saturation transfer imaging.

Exchange Market Pressure on the Pound-Dollar Exchange Rate: 1925-1931

An investigation of exchange market pressure against the pound sterling during the inter-war period. The main findings are that a) the behavior of UK fundamentals relative to those of the USA help to explain exchange market pressure against the pound; b) during the run up to devaluation in September 1931 the monetary authorities in the UK were acting to reduce domestic credit; but that c) additional pressure was brought against the pound from speculative sources. These findings relate to current thinking on the choice of exchange rate regime as even well behaved fundamentals may not be sufficient to sustain a currency on its peg.

Does Exchange Rate Risk Affect Exports Asymmetrically? Asian Evidence

The effects of exchange rate risk have interested researchers, since the collapse of fixed exchange rates. Little consensus exists, however, regarding its effect on exports. Previous studies implicitly assume symmetry. This paper tests the hypothesis of asymmetric effects of exchange rate risk with a dynamic conditional correlation bivariate GARCH(1,1)-M model. The asymmetry means that exchange rate risk (volatility) affects exports differently during appreciations and depreciations of the exchange rate. The data include bilateral exports from eight Asian countries to the US. The empirical results show that real exchange rate risk significantly affects exports for all countries, negative or positive, in periods of depreciation or appreciation. For five of the eight countries, the effects of exchange risk are asymmetric. Thus, policy makers can consider the stability of the exchange rate in addition to its depreciation as a method of stimulating export growth.

Monetary Policy, Exchange Rate Overshooting, and Endogenous Physical Capital

We develop an open economy macroeconomic model with real capital accumulation and microeconomic foundations. We show that expansionary monetary policy causes exchange rate overshooting, not once, but potentially twice; the secondary repercussion comes through the reaction of firms to changed asset prices and the firms' decisions to invest in real capital. The model sheds further light on the volatility of real and nominal exchange rates, and it suggests that changes in corporate sector profitability may affect exchange rates through international portfolio diversification in corporate securities.

The Real Exchange Rate in Small Open Developed Economies: Evidence from Cointegration Analysis

We examine the effects of the terms of trade and the expected real interest rate differential on the real exchange rate in a sample of small open developed economies. We employ cointegration analysis to search for possible long-term linkages. We find that while both the terms of trade and the expected real interest rate differentials affect the real exchange rate in the long run, the role of the terms of trade generally proves more consistent across countries. The speed of adjustment for the expected real interest rate differential in the error-correction model, however, is quantitatively larger than it is for the terms of trade.

Increasing Derivatives Market Activity in Emerging Markets and Exchange Rate Exposure

Understanding the effects of off-balance sheet transactions on interest and exchange rate exposures has become more important for emerging market countries that are experiencing remarkable growth in derivatives markets. Using firm level data, we report a significant fall in exposure over the past 10 years and relate this to higher derivatives market participation. Our methodology is composed of a three stage approach: First, we measure foreign exchange exposures using the Adler-Dumas (1984) model. Next, we follow an indirect approach to infer derivatives market participation at the firm level. Finally, we study the relationship between exchange rate exposure and derivatives market participation. Our results show that foreign exchange exposure is negatively related to derivatives market participation, and support the hedging explanation of the exchange rate exposure puzzle. This decline is especially salient in the financial sector, for bigger firms, and over longer time periods. Results are robust to using different exchange rates, a GARCH-SVAR approach to measure exchange rate exposure, and different return horizons.

Exchange Rate Stabilization and IMF High Interest Rate Policy: A Critical Reconsideration Using a Dynamic Model

This paper examines whether the IMF high interest rate policy was suitable for crisis-ridden East Asian economies. Using an "overshoot" model similar to that of Dornbusch's (1976), it shows that this sort of policy might cause an unnecessary deflationary adjusting process and have no effect on containing the real depreciation of exchange rates in the long run. The study also demonstrates that Thai economic data coincides quite well with the model presented here. Finally, it points out that the high interest policy itself might provoke high risk-premium, the existence of which, in turn, justifies the policy. This means that the policy has a self-fulfilling property. In conclusion, a "one-size-fits-all" adaptation of high interest rate policy in a currency crisis is very dangerous in general, and was inappropriate for East Asia. The desirable policy would have been to let currencies depreciate and keep interest rates stable.

What Explains Real and Nominal Exchange Rate Fluctuations? Evidence from SVAR Analysis for India

This study empirically analyzes the sources of the exchange rate fluctuations in India by employing the structural VAR model. The VAR system consists of three variables, i.e., the nominal exchange rate, the real exchange rate, and the relative output of India and a foreign country. Consistent with most previous studies, the empirical evidence demonstrates that real shocks are the main drives of the fluctuations in real and nominal exchange rates, indicating that the central bank cannot maintain the real exchange rate at its desired level over time.

Transition from black to official markets for foreign exchange in Myanmar

We address the puzzle why the black market for foreign exchange thrives in Myanmar despite the successful unification of multiple exchange rates. A closer look at the black market reveals that its enduring competitiveness stems from its lower transaction costs. A question arising from this observation is how the official market, namely banks, can compete with and replace the black market. Our empirical analysis based on an original questionnaire survey of private export firms regarding their choices of currency trading modes suggests that banks can attract exporters by exploiting the economies of scope between currency trading and lending.