IDEAS home Printed from https://ideas.repec.org/a/ula/econom/v23y1998i14p151-174.html
   My bibliography  Save this article

Interest rate parity: Is it alternative for the computation of the equilibrium exchange rate in Venezuela?

Author

Listed:
  • Josefa Ramoni Perazzi

    (Universidad de Los Andes, Facultad de Ciencias Económicas y Sociales, Departamento de Economía)

Abstract

Las interrogantes en torno a los factores determinantes del Tipo de Cambio (TC) buscan ser resueltos por diferentes enfoques. El método comúnmente utilizado, compara el poder de compra de la moneda dentro y fuera del país, lo que se conoce como Paridad del Poder Adquisitivo (PPA). Por otro lado, la Paridad de Intereses (PI), compara la rentabilidad de inversiones financieras domésticas y foráneas. Se explora aquí, la validez de ambas teorías en el comportamiento cambiario de Venezuela, haciendo uso del test de cointegración de Johansen. Habiéndose verificado la vigencia de la PPA, más no de la PI, se construye un modelo de corrección de error y se recurre al test de causalidad de Granger, para verificar la dirección de la relación.

Suggested Citation

  • Josefa Ramoni Perazzi, 1998. "Interest rate parity: Is it alternative for the computation of the equilibrium exchange rate in Venezuela?," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 23(14), pages 151-174, January-D.
  • Handle: RePEc:ula:econom:v:23:y:1998:i:14:p:151-174
    as

    Download full text from publisher

    File URL: ftp://iies.faces.ula.ve/Pdf/Revista14/Rev14Ramoni.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gruen, David W R & Wilkinson, Jenny, 1994. "Australia's Real Exchange Rate--Is It Explained by the Terms of Trade or by Real Interest Differentials?," The Economic Record, The Economic Society of Australia, vol. 70(209), pages 204-219, June.
    2. Ericsson, Neil R., 1992. "Cointegration, exogeneity, and policy analysis: A synopsis," Journal of Policy Modeling, Elsevier, vol. 14(4), pages 395-400, August.
    3. Granger, C. W. J., 1981. "Some properties of time series data and their use in econometric model specification," Journal of Econometrics, Elsevier, vol. 16(1), pages 121-130, May.
    4. Cochran, Steven J. & DeFina, Robert H., 1995. "Predictable components in exchange rates," The Quarterly Review of Economics and Finance, Elsevier, vol. 35(1), pages 1-14.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Tipo de cambio; paridad del poder adquisitivo; paridad de intereses.;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ula:econom:v:23:y:1998:i:14:p:151-174. 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: (Alexis Vásquez). General contact details of provider: http://edirc.repec.org/data/iiulave.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.