Real exchange rate, exchange rate misalignment and economic growth in Brazil: 1994-2007
In this article we argue that the Brazilian economy presented in the period 1994-2007 a tendency of real exchange rate appreciation with respect to its equilibrium value, mainly from 2005. This exchange rate misalignment has worked to reduce the growth of Brazilian economy and is the root of the re-emergence of current account deficits.
JEL Classification: F14; F31; F43.
Keywords: exchange rate misalignment economic growth the Brazilian economy