A Micro-Empirical Foundation for the Political Economy of Exchange Rate Populism
Latin American countries have experienced cycles of expansionary policies, currency appreciation, and crises. The popularity of appreciations, through their effect on consumers' purchasing power, has been an accepted assumption in the literature despite a dearth of studies on the distributional impact of exchange rate movements. This study computes the welfare effects of exchange rate movements at different points of the income distribution for Brazil and Mexico. It shows that the distributional effects of appreciations split both countries on a regional basis, instead of across income levels. In Brazil, appreciations are found to benefit less or harm more the rural areas; in Mexico, they benefit less or harm more the Northern border states. IMF Staff Papers (2008) 55, 481–510. doi:10.1057/imfsp.2008.15; published online 1 July 2008
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 55 (2008)
Issue (Month): 3 (July)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward J. Balistreri, 1997. "The Performance of the Heckscher-Ohlin-Vanek Model in Predicting Endogenous Policy Forces at the Individual Level," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 1-17, February.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2002.
"The Modern History of Exchange Rate Arrangements: A Reinterpretation,"
NBER Working Papers
8963, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 1-48, February.
- Reinhart, Carmen & Rogoff, Kenneth, 2004. "The modern history of exchange rate arrangements: A reinterpretation," MPRA Paper 14070, University Library of Munich, Germany.
- Bonomo, Marco Antônio Cesar & Terra, Maria Cristina T., 1999.
"The Political Economy of Exchange Rate Policy in Brazil: 1964-1997,"
Economics Working Papers (Ensaios Economicos da EPGE)
341, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Marco Bonomo & Cristina Terra, 1999. "The Political Economy of Exchange Rate Policy in Brazil: 1964-1997," Research Department Publications 3065, Inter-American Development Bank, Research Department.
- Marco Bonomo & Maria Cristina Terra, 1998. "The political economy of exchange rate policy in Brazil, 1964-1997," Textos para discussão 395, Department of Economics PUC-Rio (Brazil).
- Michele Ca’ Zorzi & Elke Hahn & Marcelo Sánchez, 2007.
"Exchange Rate Pass-Through in Emerging Markets,"
The IUP Journal of Monetary Economics,
IUP Publications, vol. 0(4), pages 84-102, November.
- Ari Aisen, 2004. "Money-Based Versus Exchange-Rate-Based Stabilization: Is there Space for Political Opportunism?," IMF Working Papers 04/94, International Monetary Fund.
- Porto, Guido G., 2006.
"Using survey data to assess the distributional effects of trade policy,"
Journal of International Economics,
Elsevier, vol. 70(1), pages 140-160, September.
- Guido G. Porto, 2003. "Using survey data to assess the distributional effects of trade policy," Policy Research Working Paper Series 3137, The World Bank.
- Eugene Beaulieu, 2002. "Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper-Samuelson Theorem," Economics and Politics, Wiley Blackwell, vol. 14(2), pages 99-131, 07.
- repec:idb:brikps:77398 is not listed on IDEAS
- Irineu E. Carvalho Filho & Marcos Chamon, 2006. "The Myth of Post-Reform Income Stagnation in Brazil," IMF Working Papers 06/275, International Monetary Fund.
- Agnes Belaisch, 2003. "Exchange Rate Pass-Through in Brazil," IMF Working Papers 03/141, International Monetary Fund.
- Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:55:y:2008:i:3:p:481-510. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)
If references are entirely missing, you can add them using this form.