This paper tests the conjecture that inflation rate persistence in selected Latin American countries, namely Brazil, Mexico, Uruguay and Venezuela, is related with currency undervaluation. In this manner, we expect that the behaviour of inflation rates may be non linear reflecting the changing...

This paper investigates whether the nominal euro exchange rate against the currencies of China, Japan, the UK and the USA converges or not to its equilibrium level. Applying cointegration and common trend techniques in the presence of structural breaks in the data, we found a valid long-run...