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The Impact of Exchange Rate Regime on Interest Rates in Latin America

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  • Caroline Duburcq

Abstract

We develop a theoretical framework to study the impact of the exchange rate regime in the interest rate determination. Using VECM, we assess the role of both domestic conditions and US factors in the determination of eight Latin-American countries’ intere

Suggested Citation

  • Caroline Duburcq, 2010. "The Impact of Exchange Rate Regime on Interest Rates in Latin America," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 47(135), pages 91-124.
  • Handle: RePEc:ioe:cuadec:v:47:y:2010:i:135:p:91-124
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    More about this item

    Keywords

    Interest rate determination; exchange rate regime; vector error; correction models;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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