This paper aims at identifying the underlying reasons for substantial accumulation of foreign reserves, a strategy currently followed by a large number of countries. To this end, it first studies international liquidity conditions and individual country demand for reserves. It then analyses...

This paper presents and evaluates the hypothesis that emerging countries specialized in commodity production are prone to experience non orthogonal commercial and financial shocks. Specifically, we investigate a set of global macroeconomic variables that, in principle, could simultaneously...

This paper investigates the long run behavior of real exchange rates in nineteen countries of Latin America over the period 1970 - 2006. Our data does not support the Purchasing Power Parity (PPP) hypothesis, implying that real shocks tend to have permanent effects on Latin America’s real...

El Mercosur se ha convertido, en los últimos años, en el socio comercial extra comunitario más dinámico de España, al tiempo que nuestro país es el principal inversor europeo en la zona y el segundo a nivel mundial, por detrás de Estados Unidos. Pero este acercamiento no es sólo...