TY  - BOOK
AU  - Végh Gramont,Carlos A.
AU  - Calvo,Guillermo
AU  - Reinhart,Carmen
AU  - Végh Gramont,Carlos A.
TI  - Targeting the Real Exchange Rate: Theory and Evidence 
T2  - IMF Working Papers; Working Paper
SN  - 1451921217 :
SN  - 1018-5941
PY  - 1994///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Exchange Rate
KW  - imf
KW  - Inflation Tax
KW  - Nominal Interest Rate
KW  - Real Exchange Rate
KW  - Brazil
KW  - Chile
KW  - Colombia
N2  - This paper presents a theoretical and empirical analysis of policies aimed at setting a more depreciated level of the real exchange rate. An intertemporal optimizing model suggests that, in the absence of changes in fiscal policy, a more depreciated level of the real exchange can only be attained temporarily. This can be achieved by means of higher inflation and/or higher real interest rates, depending on the degree of capital mobility. Evidence for Brazil, Chile, and Colombia supports the model's prediction that undervalued real exchange rates are associated with higher inflation
UR  - http://elibrary.imf.org/view/IMF001/06698-9781451921212/06698-9781451921212/06698-9781451921212.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451921212
ER  -