Behavior of the real exchange rate in the long run: empirical evidence in eight Latin American countries

Authors

  • Javier León Astete
  • Carlos Oliva

DOI:

https://doi.org/10.21678/apuntes.27.314

Keywords:

Latin America, exchange rate, econometrics, monetary policy

Abstract

This paper uses a variance ratio statistic in order to capture the importance of the non-stationary component in the real exchange rate in 8 Latin-American countries. The outcome is then used to determine the behavior of this variable in the long run. The authors conclude that the real exchange rate shows a quasi-stationary process in all the countries, with an important mean-reverting component that reverts part of the innovation in a less than five years period.​

Downloads

Download data is not yet available.

Downloads

Published

1990-12-10

How to Cite

León Astete, J., & Oliva, C. (1990). Behavior of the real exchange rate in the long run: empirical evidence in eight Latin American countries. Apuntes. Social Sciences Journal, (27), 13–29. https://doi.org/10.21678/apuntes.27.314

Issue

Apuntes 27

Section

Articles

License

Apuntes publishes all its articles and reviews under a Creative Commons Attribution (CC BY 4.0) license with the objective of promoting academic exchange worldwide. Therefore, articles and book reviews can be distributed, edited, amended, etc., as the author sees fit. The only condition is that the name of the author(s) and Apuntes. Revista de Ciencias Sociales (as the publisher) be cited.