Please use this identifier to cite or link to this item:
Marçal, Emerson Fernandes
Year of Publication: 
Series/Report no.: 
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1666
Abstract (Translated): 
This paper aims to estimate the equilibrium real exchange rate for the Brazilian economy. The equilibrium exchange rate is defined as the level of exchange that guarantees that the net foreign asset position is stable over time. An econometric model is estimated using cointegration techniques. The results of the estimated model suggest that Brazilian currency was overvalued when compared to weighted basket of foreign currencies at the end of 2010. The model also suggests that the Brazilian currency is overvalued due to a predominantly transitory gain in Brazilian terms of trade. If this is correct the Brazilian currency must depreciate in the long run in order to sustain the stability of the net foreign asset position. Gonzalo e Granger (1995) methodology was used to decompose the series in transitory and permanent components.
Document Type: 
Working Paper

Files in This Item:
861.53 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.