publication . Preprint . 2013

The Brazilian experience in managing interest-exchange rate nexus

Ricardo Carneiro; Pedro Rossi;
Open Access
  • Published: 01 May 2013
Abstract
This paper addresses four main questions: firstly, it discusses some theoretical background related to the interest-exchange rate nexus; secondly, it makes an attempt to explain why the interest rate in Brazil is so high, examining briefly the main explanations for it; thirdly, it describes Brazil’s foreign exchange markets, their size and hierarchy; and lastly, it explains the carry trade dynamics considering the institutionalism of the Brazilian foreign exchange market and also the government policies envisioned to curb it.
Subjects
free text keywords: working paper, daadpartnership, finance-and-trade, jel:E44, jel:E52, jel:F4

Avdjieva, S. et al. (2010) “Highlights of international banking and financial market activity”, BIS Quarterly Review, December.

BIS (2010) Triennial Central Bank Survey: Report on global foreign exchange market activity in 2010, December. <http://www.bis.org/publ/rpfxf10t.pdf>

Carneiro, R. (2008) “Globalização e Inconversibilidade Monetária/”, Revista de Economia Política, vol. 28, no.4, pp. 539Ͳ 556.

Dodd, R., & GriffithͲ Jones, S. (2007). Brazil's Derivatives Markets: Hedging, Central Bank Intervention and Regulation, Economic Commission for Latin America and the Caribbean (ECLAC).

Gagnon, J.E. &Chabound, A. P. (2007), What Can the Data Tell Us about Carry Trades in Japanese Yen?, International Finance Discussion Papers, No 899, Board of Governors of the Federal Reserve System, July/ 2007.

Garcia, M. &Urban, F (2004) O mercado interbancário de câmbio. Rio de Janeiro: Pontifícia Universidade Católica.

Flassbeck, H.& LA Marca, M. (Eds) (2007) Coping with globalized finance: Recent Challenges and LongͲ term Perspectives, Geneva: UNCTAD.

He, D. &McCauley, R. (2010) “Offshore markets for the domestic currency: monetary and financial stability issues”, BIS Working Papers, N. 320

Isard, P. (2008) Uncovered interest rate parity, In The new Palgrave, volume 8, Palgrave Macmilan.

Kaltenbrunner, A. (2010) “International Financialization and Depreciation: The Brazilian Real in the International Financial Crisis”, Competition and Change, Vol. 14 No. 3-4, SeptemberDecember, 2010, 294-321.

Keynes, J.M. (1924) A tract on monetary reform, Nova York: Prometheus Books, 2000.

Milhalijek, D. & Packer, F. (2010) “Derivatives in emerging markets”, BIS Quarterly Review, December.

Rossi, P. (2011) “Taxa de câmbio no Brasil: dinâmicas da arbitragem e da especulação”, Observatório da Economia Global, Textos Avulsos n.7.<http://www.iececon.net/foco.htm>

Rossi, P. & Prates, D.M. (2013) “Financiamento às exportações no Brasil”Análise Econômica (UFRGS), v. 31, p. 203Ͳ 230, 2013.

Publisher: Competence Center “Money, Finance, Trade and Development “ HTW-Berlin - Treskowallee 8, 10318 Berlin Prof. Dr. Sebastian Dullien, Prof. Dr. Jan Priewe

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue