SciELO - Scientific Electronic Library Online

 
vol.20 issue2Social regulation and accumulation by spoliation: reflection on the essence of the theses of financialization and the nature of the state in the characterization of contemporary capitalism author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Economia e Sociedade

Print version ISSN 0104-0618

Abstract

GALA, Paulo  and  LIBANIO, Gilberto. Exchange rates, savings and productivity: short and long-term impacts. Econ. soc. [online]. 2011, vol.20, n.2, pp. 229-242. ISSN 0104-0618.  http://dx.doi.org/10.1590/S0104-06182011000200001.

The objective of this paper is to analyze, from a theoretical point of view, the relation between real exchange rates and economic development. The main hypothesis is very much in line with the Dutch disease literature and states that competitive currencies contribute to the existence and maintenance of the manufacturing sector in the economy. This, in turn, brings about higher growth rates in the long run, given the existence of increasing returns in the industrial sector and its importance in generating technological change and increasing productivity in the overall economy. We also show from a theoretical perspective how a competitive exchange rate can stimulate domestic savings by avoiding consumption booms based on currency overvaluation.

Keywords : Exchange rate; Savings; Investment; Economic development - Brazil.

        · abstract in Portuguese     · text in Portuguese     · pdf in Portuguese