The long-term “optimal” real exchange rate and the currency overvaluation tren in open emerging economies: the case of Brasil by André Nassif, Carmem Feijó and Eliane Araújo. “The econometric results show two basic conclusion: first, the Brazilian currency was persistently overvalued throughout almost all of the period under analysis; and second, the long-term ´optima` real exchange rate was reached in 2004. According to our estimation, in April 2011, the real overvaluation of the Brazilian currency in relation to the long-term ´optimal`level was around 80 per cent.”
