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Uncovered Interest Parity and the Peso Problem: The Brazilian Case

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Author Info
Sachsida, Adolfo
Ellery, Roberto, Jr
Rodolpho Teixeira, Joanilio

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Abstract

The uncovered interest parity (UIP) test for Brazil is presented from the standpoint of rational expectations hypothesis. The period is January 1984 to October 1998. The econometric tests validate the UIP just for the sub-period January 1990 to June 1994. The result suggests fail with the UIP in the Real Plan, validating the theoretical point proposed by Krasker. Copyright 2001 by Taylor and Francis Group

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 3 (March)
Pages: 179-81
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Handle: RePEc:taf:apeclt:v:8:y:2001:i:3:p:179-81

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