This paper tests the occurrence of rational bubbles in the exchange rate of Brazil, Russia, India, China and South Africa (the ‘BRICS' countries group) against the US dollar. We consider bubbles of the periodically recurring variety, and assume that the fundamental value follows a modified PPP...

The Brazilian exchange rate has suffered strong fluctuations in the last year. They resulted from the Argentina crises and the energetic crises which influenced expectations about the future value of this variable, however the fundamentals of the economy did not vary significantly. In this paper...