Efectos del Programa de Desinflación Competitiva en España sobre el Tipo de Cambio Real

  • Mariam Camarero Universidad Jaume I y Wharton School, University of Pennsylvania
  • Vicente Esteve Universidad de Valencia
  • Cecilio Tamarit Universidad de Valencia y Wharton School, University of Pennsylvania

Abstract

In this paper we enquire about the link among Spanish real effective exchange rate relative to the EU, The terms of trade and the real interest rate differential over the period 1980-1994. This period is of interest to the Spanish economy due to the fact the monetary authorities were applying the so-called "competitive disinflation" strategy in the European Monetary System. The analysis draws on Meese and Rogoff (1998), using the terms of trade as an explanatory variable for the long-run performance of the real exchange rate. The empirical results shows that the interest rate differential, representing the demand side factors, has been the relevant one in explaining the real exchange rate behavior, while the terms of trade have been of a minor importance. This fact could be due to the tight monetary policy undertaken during this decade as a part of a disinflationary program as wells as to the important changes occured to the financing of the public sector.
How to Cite
Camarero, M., Esteve, V., & Tamarit, C. (1). Efectos del Programa de Desinflación Competitiva en España sobre el Tipo de Cambio Real. Economic Analysis Review, 14(2), 23-43. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/113
Issue
Vol. 14 No. 2 (1999)
Section
Articles

Upon submission of an article, authors are asked to indicate their agreement to abide by an open-access license. The license permits any user to download, print out, extract, archive, and distribute the article, so long as appropriate credit is given to the authors of the work. The license ensures that your article will be as widely available as possible and that your article can be included in any scientific archive. Please read about the Creative Commons Attribution License before submitting your paper. 
Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 3.0 License