Purchase and sale-oriented exchange rate intervention effectiveness carried on by the Central Bank of Guatemala is analyzed through an ACT-GARCH model. By using daily information for the period 1996-2008 it is found that purchase-oriented intervention tends to reduce exchange rate long run...

El documento pasa revista a cinco posibles alternativas cambiarias que podrían contemplar las autoridades en el momento actual. La primera es seguir con el actual status quo. Una segunda alternativa es la dolarización unilateral. La tercera es dar más mandatos al Banco de México. Una cuarta...

This paper presents an extension of the model proposed by Bernanke and Mihov (1998), which includes financial dollarization, in order to estimate the effects of monetary policy in Peru for the period 1995-2009. The results show that the effects of monetary policy in a dollarized economy are...

The characteristics of recent capital inflows to Latin America are discussed. It is argued that these inflows are partially explained by economic conditions outside the region, like the recession in the United States and lower international interest rates. The importance of external factors...

This paper tries to explain, using a model that includes asset market risk country, the behavior of nominal exchange rate, as well as determine the impact of this risk in determining the exchange rate, also seeks to establish whether the exchange rate is below the level predicted by their bases...

In recent years, Bolivia has accumulated a significant level of international reserves due to favorable external environment and the exchange rate regimen (crawling peg). In this context arises the question of: Which one is the optimal level of international reserves? According to the...

This article has two main objectives. First, estimate the real equilibrium exchange rate (REER) of the Dominican Republic, and second, to determine the misalignment, if any, between the observed real exchange rate (RER) and its equilibrium level. To carry out the analysis six different...

The aim of this article is to examine the effect of the real exchange rate misalignment on the economic growth in the Dominican Republic. The paper constructs six measures of exchange rate misalignment. The empirical results indicate that the coefficients for the different measures of RER...

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...

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...