The manufacturing sectors in Latin America have been more affected by the currency over/undervaluation than their counterpart in industrialized economies. From a panel data set covering 39 countries and 22 manufacturing sectors (2-digit) within 1995-2008, we formally test the hypothesis that...

Real exchange rate fluctuations impact domestic economic activity throughout the trade and financial channels. Using granular data from the Brazilian manufacturing sector, we decompose the manufacturing sector into different sub-sectors according to their net exposures to international trade and...

What is the impact of a permanent nominal appreciation on manufacturing prices and employment? To answer this question this study exploits the unexpected 10% appreciation in the aftermath of the removal of the Swiss National Bank's exchange rate floor in January 2015. Prices of products sold by...