The research addresses three methodological questions that are central to effective exchange rate and macroeconomic management: what are the determinants and how to model the real exchange rate (RER), how to estimate its equilibrium level, and how to quantify the likely impact of misalignment on...

Research on regional economic growth in Chile has focused mainly on convergence (absolute vs. conditional) and the speed toward the steady state, and less on what such convergence entails in terms of welfare, poverty reduction, and inequality. This is a major limitation. This paper presents an...