Evaluando el rol financiero del tipo de cambio

Our contribution aims at rethinking the role of the exchange rate as a tool to boost investment and structural change, by constructing an analytical macro model based on Frenkel and Ros (2006), Ros (2015) and Dvoskin and Feldman (2018). We consider, in particular, the financial cost of depreciation, which is generated by imbalances in the foreign exchange rate position in firms’ balance sheet. The imbalance, as stylized facts for Mexico show, is due to the excess of imported capital goods and the issuance of foreign exchange debt. Results from the model shows that exchange rate policies work to promote capital accumulation and structural change, however, there are specific conditions under which they must operate.