Living with a Floating Exchange Rate

Since the implementation of a floating exchange system by the Brazilian economicauthorities in mid-1999, the trajectory of the real exchange rate has been characterizedby extreme volatility, inherent in such a system. The Brazilian financial market, however,has the advantage to possess a reasonably...

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Detalhes bibliográficos
Autores: Farhi, Maryse, Cintra, Marcos Antonio Macedo
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2000
País:Brasil
Recursos:EDITORA 34
Repositório:Revista de Economia Política
Idioma:português
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1011
Acesso em linha:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1011
Access Level:Acceso aberto
Palavra-chave:Regime cambial
taxa de câmbio
câmbio flutuante
estabilização
regulação
Exchange rate regime
exchange rate
floating exchange rate
stabilization
regulation
Descrição
Resumo:Since the implementation of a floating exchange system by the Brazilian economicauthorities in mid-1999, the trajectory of the real exchange rate has been characterizedby extreme volatility, inherent in such a system. The Brazilian financial market, however,has the advantage to possess a reasonably liquid derivative market which can contribute to aless turbulent ‘relationship’ with a floating exchange regime. Nevertheless, any possible benefitsfrom this market to the Brazilian economy would require: the routine use of financialderivatives by economic agents in their business management, the elimination of any restrictionto access to derivative markets by foreign investors, and the improvement of supervisoryand regulatory mechanisms. JEL Classification: E42; E58; F31.