Symptoms and treatments of the Dutch Disease: a comparative case study between Brazil and Chile
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2022-12-09
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Prado Junior, Servio Tulio
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The Dutch disease is a macroeconomic phenomenon seriously affecting countries which export large quantities of natural resources. Its main symptom is the real exchange rate appreciation which impacts the whole economy. In particular, it represents a disadvantage for the tradable sectors, which suffer from the stronger currency and lose international competitiveness. The aim of this thesis is to review the literature to understand the causes and consequences of the illness. Furthermore, a comparative case study between Brazil and Chile has been realized to assess the literature and comprehend to what extent they contracted the illness. Finally, the last chapter describes the methods present in the literature to neutralize the Dutch disease.