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Original Articles

Uncovered interest parity and the peso problem: the Brazilian case

Pages 179-181 | Published online: 06 Oct 2010
 

Abstract

The uncovered interest parity (UIP) test for Brazil is presented from the standpoint of rational expectations hypothesis. The period is January 1984 to October 1998. The econometric tests validate the UIP just for the sub-period January 1990 to June 1994. The result suggests fail with the UIP in the Real Plan, validating the theoretical point proposed by Krasker.

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