Name:
Publisher version
View Source
Access full-text PDFOpen Access
View Source
Check access options
Check access options
Average rating
Cast your vote
You can rate an item by clicking the amount of stars they wish to award to this item.
When enough users have cast their vote on this item, the average rating will also be shown.
Star rating
Your vote was cast
Thank you for your feedback
Thank you for your feedback
Authors
Carrera, CésarIssue Date
2015-03-18
Metadata
Show full item recordCitation
Carrera, C. (2015). Tracking Exchange Rate Managementin Latin America. Review of Financial Economics. doi:10.1016/j.rfe.2015.02.004Publisher
Elsevier B.V.Journal
Review of Financial EconomicsDOI
10.1016/j.rfe.2015.02.004Additional Links
http://www.sciencedirect.com/science/article/pii/S105833001500018XAbstract
The exchange rate is one of the most important prices in any open economy. Tracking deviations from its long-run value may provide important information for policymakers. One way to track such deviations is to examine numerical patterns in exchange rates to see if the patterns appear to have been subject to some degree of policy management. Following this approach, we use Benford’s Law as our base case for free-floating exchange rates. Benford’s Law argues that the frequence of the appearance of numerals finds 1’s more frequent, than 2’s, than 3’s, etc., and this established statistical patterns has been verified and used in research tests in many scientific fields. We apply our forensic approach to exchange rates, computing the distribution of exchange-rate observed values and comparing them with those of Benford’s Law. We document such cases for 15 Latin American countries. Latin American countries are small open economies that are characterized for having different degrees of dollarization and intervention in the forex market, primary based on US dollar transactions. This is an alternative view of how these characteristics play a role with respect to an implied equilibrium exchange rate.Type
info:eu-repo/semantics/articleRights
info:eu-repo/semantics/openAccessLanguage
engDescription
[email protected]ISSN
1058-3300ae974a485f413a2113503eed53cd6c53
10.1016/j.rfe.2015.02.004
Scopus Count
Collections