Arellano, Soledad; Larraín, Felipe - In: Latin American Journal of Economics-formerly Cuadernos … 33 (1996) 98, pp. 47-76
This paper draws on the work of Rodríguez (1982, 1989, 1992) to develop a simple theoretical model whose reduced form has the real exchange rate as a function of the level, composition, and financing of public spending, the terms of trade, and the trade b