This paper analyses stability in real multilateral exchange rates in six leading Latin-American economies during the XXth century using a new data set.  A univariate approach is complemented by an error-correction model including key fundamentals.  Unit-root testing shows a very slow process...

Fundamentals may determine the range of real exchange rate fluctuation, through signalsof misalignment, even if they are not a major influence on the level within that range.This can explain the puzzle that more open economies experience lower real exchangerate volatility...

China was extremely successful in recent decades in managing external equilibrium in the short and medium term using three mechanisms to cushion the balance of payments shocks. First, it maintained a flexible rate, so could adjust to the fluctuations in trade balance and capital flows via...

The Democratic Republic of Congo (DRC) has faced persistent current account deficits despite a period of economic growth fueled by Foreign Direct Investment (FDI). This paper uses an Autoregressive Distributed Lag (ARDL) model and the Balance of Payments (BOP) framework to explore the dynamics...

The characteristics of recent capital inflows to Latin America are discussed. It is argued that these inflows are partially explained by economic conditions outside the region, like the recession in the United States and lower international interest rates. The importance of external factors...