publication . Preprint . 2013

The Brazilian experience in managing interest-exchange rate nexus

Ricardo Carneiro; Pedro Rossi;
Open Access
  • Published: 01 May 2013
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.
free text keywords: working paper, daadpartnership, finance-and-trade, jel:E44, jel:E52, jel:F4

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

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