This paper uses the "Behavioral Equilibrium Exchange Rate" (BEER) approach to estimate the equilibrium real exchange rate (RER) for Peru. A bootstrap technique is then employed to build confidence bands for the equilibrium path, so that it is possible to determine whether exchange rate...

In this article the underlying inflation is estimated by means of a common stochastic trend scheme associated with a structural restriction vectorial error correction model (SVEC). The estimation possesses the desired characteristic concerning variance and it's related with the behavior of...

Dornbusch’s exchange rate overshooting hypothesis (1976) is a central building block in international macroeconomics. This paper analyzes the effects of monetary and other macroeconomic shocks on the real exchange rate in the case of a small economy like Argentina. The paper uses SVAR models...

Dornbusch’s exchange rate overshooting hypothesis (1976) is a central building block in international macroeconomics. This paper analyzes the effects of monetary and other macroeconomic shocks on the real exchange rate in the case of a small economy like Argentina. The paper uses SVAR models...

This paper proposes a new real exchange rate index for the Mexican economy. Unlike the methodology currently being employed by the Bank of Mexico, the new index reflects the changing patterns of trade between the country and the rest of the world. The index is calculated on a quarterly basis...

Nonlinearly mean-reverting models can explain the high short-term volatility ofthe real exchange rate and the slow speed of adjustment to the equilibrium level. Anonlinearly mean-reverting model is used in this paper to fit to euro-dollar realexchange rate. This model implies that near...

This paper estimates the magnitude of the exchange rate pass-through to consumer prices in Mexico. Moreover, it analyzes if the pass-through dynamics have changed in recent years. In particular, it uses a methodology that generates results consistent with the hierarchy implicit in the CPI. The...

This paper analyzes the pass-through of exchange rate to different price indexes in Mexico. The analysis is based on a vector autoregressive model (VAR) using monthly data from January 1997 to December 2010. The pass-through effects are calculated by means of accumulated impulse response...

This paper analyzes the results of some price stabilization programs classified in the literature as Exchange Rate Based Stabilization (ERBS) and Money Based Stabilization (MBS) in connection to their temporary nature for this, a theoretical and analytical framework is developed that allows...

This paper analyzes the exchange rate pass through to consumer prices in Mexico using different methodologies. First, we estimate Vector Autoregressive Models (VAR). Subsequently, we estimate Autoregressive Distributed Lags Models (ARDL) in order to make a long run analysis. In particular, we...