The industrial equilibrium exchange rate in Brazil: an estimation
This paper presents a methodology for calculating the industrial equilibrium exchange rate, which is defined as the one enabling exporters of state-of-the-art manufactured goods to be competitive abroad. The first section highlights the causes and problems of overvalued exchange rates, particularly...
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| Format: | Article |
| Language: | English |
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Editora 34
2012-12-01
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| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000400007&lng=en&tlng=en |
| _version_ | 1819260741342986240 |
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| author | Nelson Marconi |
| author_facet | Nelson Marconi |
| author_sort | Nelson Marconi |
| collection | DOAJ |
| description | This paper presents a methodology for calculating the industrial equilibrium exchange rate, which is defined as the one enabling exporters of state-of-the-art manufactured goods to be competitive abroad. The first section highlights the causes and problems of overvalued exchange rates, particularly the Dutch disease issue, which is neutralized when the exchange rate strikes the industrial equilibrium level. This level is defined by the ratio between the unit labor cost in the country under consideration and in competing countries. Finally, the evolution of this exchange rate in the Brazilian economy is estimated. |
| first_indexed | 2024-12-23T19:30:43Z |
| format | Article |
| id | doaj.art-ad658eca424846609b9ff66ba44cf80b |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-12-23T19:30:43Z |
| publishDate | 2012-12-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-ad658eca424846609b9ff66ba44cf80b2022-12-21T17:33:56ZengEditora 34Brazilian Journal of Political Economy1809-45382012-12-0132465666910.1590/S0101-31572012000400007S0101-31572012000400007The industrial equilibrium exchange rate in Brazil: an estimationNelson Marconi0Fundação Getúlio VargasThis paper presents a methodology for calculating the industrial equilibrium exchange rate, which is defined as the one enabling exporters of state-of-the-art manufactured goods to be competitive abroad. The first section highlights the causes and problems of overvalued exchange rates, particularly the Dutch disease issue, which is neutralized when the exchange rate strikes the industrial equilibrium level. This level is defined by the ratio between the unit labor cost in the country under consideration and in competing countries. Finally, the evolution of this exchange rate in the Brazilian economy is estimated.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000400007&lng=en&tlng=enexchange rateDutch diseasedeindustrializationeconomic development |
| spellingShingle | Nelson Marconi The industrial equilibrium exchange rate in Brazil: an estimation Brazilian Journal of Political Economy exchange rate Dutch disease deindustrialization economic development |
| title | The industrial equilibrium exchange rate in Brazil: an estimation |
| title_full | The industrial equilibrium exchange rate in Brazil: an estimation |
| title_fullStr | The industrial equilibrium exchange rate in Brazil: an estimation |
| title_full_unstemmed | The industrial equilibrium exchange rate in Brazil: an estimation |
| title_short | The industrial equilibrium exchange rate in Brazil: an estimation |
| title_sort | industrial equilibrium exchange rate in brazil an estimation |
| topic | exchange rate Dutch disease deindustrialization economic development |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000400007&lng=en&tlng=en |
| work_keys_str_mv | AT nelsonmarconi theindustrialequilibriumexchangerateinbrazilanestimation AT nelsonmarconi industrialequilibriumexchangerateinbrazilanestimation |