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Real exchange rate and openness in emerging economies: Argentina in the long run

Author

Listed:
  • Christine Richaud
  • AristomEne Varoudakis
  • Marie-Ange VEganzonEs
Abstract
Argentina's economic policies since the beginning of the century, give an interesting background to the study of Real Exchange Rate (RER) management in emerging countries. In this article, four types of RER overvaluation are identified. In the 1920s, Argentina provides a short example of overvaluation in a context of a fixed exchange rate policy. Moreover, the estimations show that import substitution regimes can lead to a misalignment of RER. Argentina illustrates also the difficult management of RER in a volatile environment. The results allow, in addition, to better understand the failure of the trade liberalization attempts of the country and remind that successfully integrating the world economy asks for an appropriate RER policy.

Suggested Citation

  • Christine Richaud & AristomEne Varoudakis & Marie-Ange VEganzonEs, 2003. "Real exchange rate and openness in emerging economies: Argentina in the long run," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 293-303.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:293-303
    DOI: 10.1080/00036846.2003.10106748
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    Cited by:

    1. David Matesanz & Guadalupe Fugarolas, 2009. "Exchange rate policy and trade balance: a cointegration analysis of the Argentine experience since 1962," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2571-2582.
    2. Astorga, Pablo, 2012. "Mean reversion in long-horizon real exchange rates: Evidence from Latin America," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1529-1550.
    3. Nikas, A. & Koasidis, K. & Köberle, A.C. & Kourtesi, G. & Doukas, H., 2022. "A comparative study of biodiesel in Brazil and Argentina: An integrated systems of innovation perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    4. niaz ahmad mohd, Naseem & yusop, Zulkornain & masron, Tajul ariffin, 2009. "How did the Malaysian real exchange rate misalign during the 1997 Asian crisis?," MPRA Paper 44922, University Library of Munich, Germany.
    5. Hoarau, Jean-François, 2009. "L’approche microéconomique du taux de change réel d’équilibre : une revue de la littérature théorique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 85(4), pages 403-436, décembre.
    6. Astorga, Pablo, 2012. "Mean reversion in long-horizon real exchange rates: Evidence from Latin America," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1529-1550.
    7. Astorga, Pablo, 2007. "Real exchange rates in Latin America : what does the 20th century reveal?," IFCS - Working Papers in Economic History.WH wp07-03, Universidad Carlos III de Madrid. Instituto Figuerola.

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