01709cas a2200253 a 4500 AALejournalIMF001267 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853094 1018-5941 BD-DhAAL BD-DhAAL Dabos, Marcelo. Real Exchange Rate Response to Capital Flows in Mexico : An Empirical Analysis / Marcelo Dabos, V. Juan-Ramon. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This study shows that in Mexico there is a long-run relationship between the real exchange rate and capital inflows, the external terms of trade, and productivity in the manufacturing sector. A once-and-for-all unit increase in the ratio of quarterly capital inflow to quarterly (annualized) GDP causes a long-run real appreciation of the peso of about 12 percent. The analysis also reveals a structural break in 1995, which coincides with the change to a floating exchange rate arrangement, and an overvaluation of the peso in real terms on the eve of the end-1994 crisis in the range of 12 to 25 percent. Mode of access: Internet Juan-Ramon, V. IMF Working Papers; Working Paper ; No. 2000/108 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/108/001.2000.issue-108-en.xml IMF e-Library