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Structural changes in exchange rate regimes in Brazil

Author

Listed:
  • Reginaldo Pinto Nogueira

    (IBMEC-MG)

  • Claudio Djissey Shikida

    (IBMEC-MG)

  • Ari Francisco de Araujo

    (IBMEC-MG)

Abstract

Following a dramatic breakdown of a managed floating regime, Brazil adopted a framework for policy consisting of inflation targeting and floating exchange rates. The country's commitment to this arrangement, however, is often put to dispute. In this paper we revisit the issue of whether Brazil has truly accepted to let its currency float, taking use of cross-currency linear regression models complemented by inferential techniques for evaluating the stability of exchange rate regimes. The results found suggest that Brazil does seem to have shifted towards greater exchange rate flexibility after the abandonment of its dollar-peg. However, after the adoption of inflation targeting the degree of exchange rate flexibility seems to have reduced a little.

Suggested Citation

  • Reginaldo Pinto Nogueira & Claudio Djissey Shikida & Ari Francisco de Araujo, 2011. "Structural changes in exchange rate regimes in Brazil," Economics Bulletin, AccessEcon, vol. 31(2), pages 1748-1756.
    • Handle: RePEc:ebl:ecbull:eb-11-00296
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Structural changes; exchange rate regimes; emerging markets.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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