Valuation Effects, Exchange Rates, and Risk Sharing in Emerging Market Economies

PRESENTATION June 13, 2023

Excerpt from Abstract of paper: “We examine the issue of valuation effects in emerging market economies (EMEs), particularly the impact of exchange rate variations on their external wealth. Taking Chile as a case study, we first show that price and exchange rate-induced valuation changes have led to divergent trends between the accumulated current account and the NIIP, which improved markedly between 2019 and 2021 despite extreme social unrest and the Covid crisis.”

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Valuation Effects, Exchange Rates, and Risk Sharing in Emerging Market Economies

Speaker / Author

José De Gregorio, Ph.D.

Former President of the Central Bank of Chile

José De Gregorio is a Full Professor and Dean of the School of Economics and Business of Universidad de Chile. He is also a nonresident senior fellow at the Peterson Institute for International Economics, member of the board and financial advisor at several private companies and consultant in international financial organizations. He was the President of the Central Bank of Chile from 2007 until 2011, after being its Vice-President from 2003, and member of the Bank's Board from 2001. During 2000 and 2001, Mr. De Gregorio was Minister of Economy, Mining and Energy. Between 1997 and 2000 he was a professor ... Read More