Abstract
Kregel, Jan.2011.Structured derivatives contracts, hedging exchange appreciation and financial instability,Article,[Sao Paulo, Brazil]Centro de Economia Politica,5
Highlights
There has been a great deal of discussion recently over the use of exchange rates to ameliorate international imbalances
While it is often argued that these relative movements in exchange rates will aid the international balances of payments adjustment process, whether this is cor‐ rect remains to be seen
Export firms in countries with appreciating ex‐ change rates will seek means to subvert an adjustment process based on reducing their profitability
Summary
There has been a great deal of discussion recently over the use of exchange rates to ameliorate international imbalances. Export firms in countries with appreciating ex‐ change rates will seek means to subvert an adjustment process based on reducing their profitability.
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