EME Case Study: Brazil post-2007:
The task is Referring to relevant research publications, discuss how the exchange rate affects external
balances and the real economy through the so-called trade channel and the so-called financial channel.
Discuss also the evidence regarding how the overall effects differ for emerging markets economies (EME) and
for advanced economies (AE). “analyse its external position since the 2007 financial crisis. Include in the
analysis the evolution of the exchange rate regime and stock of reserves.”
-For the main source use this as a case study, https://www.elibrary.imf.org/view/IMF071/25455-
9781484375686/25455-9781484375686/ch07.xml?language=en&redirect=true
Sample Solution
