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This article analyzes the relationship between economic growth, income  distribution and real exchange rate within the neo-Kaleckian literature,  through the construction of a nonlinear macrodynamic model for an open  economy in which investment in fixed capital is assumed to be a quadratic  function of the real exchange rate. The model demonstrates that the  prevailing regime of accumulation in a given economy depends on the type of  currency misalignment, so if the real exchange rate is overvalued, then the  regime of accumulation will be profit-led, but if the exchange rate is  undervalued, then the accumulation regime is wage-led. Subsequently, the  adherence of the theoretical model to data is tested for Brazil in the period  1994/Q3-2008/Q4. The econometric results are consistent with the theoretical  non-linear specification of the investment function used in the model, so  that we can define the existence of a real exchange rate that maximizes the  rate of capital accumulation for the Brazilian economy. From the estimate of  this optimal rate we show that the real exchange rate is overvalued in  1994/Q3- 2001/Q1 and 2005/Q4-2008/Q4 and undervalued in the period  2001/Q2-2005/Q3. As a direct corollary of this result, it follows that the  prevailing regime of accumulation in the Brazilian economy after the last  quarter of 2005 is profit-led

Exchange rate misalignment, capital accumulation and income distribution: Theory and evidence from the case of Brazil