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Travel hysteresis in the Brazilian current account

Author

Listed:
  • Sergio Da Silva

    (Department of Economics, Federal University of Santa Catarina)

  • Guilherme Moura

    (Department of Economics, Pontifical Catholic University of Minas Gerais)

  • Roberto Meurer

    (Department of Economics, Federal University of Santa Catarina)

Abstract

The strong Brazilian currency between 1994 and 1998 led Brazilians to an unprecedented increase in their travels abroad. Even after the 1999 currency crisis, travel patterns did not recover to their pre-exchange rate devaluation levels. The occasional exchange rate valuation has left long-lasting effects by changing habits, and thereby generating a travel hysteresis in the Brazilian current account.

Suggested Citation

  • Sergio Da Silva & Guilherme Moura & Roberto Meurer, 2005. "Travel hysteresis in the Brazilian current account," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-17.
    • Handle: RePEc:ebl:ecbull:eb-05f40003
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    References listed on IDEAS

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    1. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    2. W David McCausland, 2002. "Exchange Rate Hysteresis: The Effects of Overshooting and Short‐Termism," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 60-67, March.
    3. Roberts, Mark A. & McCausland, W. David, 1999. "Multiple international debt equilibria and irreversibility," Economic Modelling, Elsevier, vol. 16(2), pages 179-188, April.
    4. Richard Baldwin & Paul Krugman, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 635-654.
    5. Avinash Dixit, 1989. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(2), pages 205-228.
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    1. Sergio Da Silva & Guilherme Moura & Roberto Meurer, 2005. "Travel hysteresis in the US current account after the mid-1980s," Economics Bulletin, AccessEcon, vol. 14(2), pages 1-10.
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    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F3 - International Economics - - International Finance

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