![Sample our Economics, Finance,Business & Industry journals, sign in here to start your access, latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5931/TOC-Subject-Sample-2021-Economics-Finance-Business-Industry.jpg"})
Abstract
The Brazilian Trade Balance deficit in the 1990s was blamed on the adopted crawling-peg exchange rate regime in which the real exchange rate was supposedly appreciated. The purpose in this letter is to assess this relationship by using VEC-M model to check if Marshall–Lerner condition and J-curve phenomenon hold. The results indicate that the Marshall–Lerner condition holds and the J-curve would be present in the aftermath of a real exchange rate devaluation.
Acknowledgements
We are grateful for comments from the Editor, Afonso Henriques Borges Ferreira and Cleomar Gomes. Fabio Gomes are grateful for FAPERJ financial support.