Was there an alternative to the Brazilian crisis

Bibliographic Data

ID4369518
AuthorsJ A Kregel (Universita degli Studi di Bologna), Jan Kregel (University of Bologna, corresponding author)
Year1999
Volume19
Issue3
Pages426-441
Publication date1999-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueBrazilian Journal of Political Economy (JOURNAL)
Journal identifiersISSN: 0101-3157 • E-ISSN: 1809-4538
PublisherFapUNIFESP (SciELO) (PUBLISHER)
DOI10.1590/0101-31571999-1189
OpenAlexW2939472513
SCIELO_PIDS0101-31571999000300426
LanguageEN
Citations received6
References cited1

In difference from Asia, high interest rates and stable exchange rates associated with the Real Plan did not produce a corporate debt deflation because of the low corporate indebtedness in Brazil. Instead high interest rates caused both the foreign and fiscal balances to deteriorate, reducing confidence. Any attempt to reduce interest rates brought the threat of currency weakness and the risk of inflation. The crisis was due to the reliance on high interest rates to attract capital flows which were insufficient to produce investment which gave a satisfactory rate of growth

Capital (architecture · Currency · Currency crisis · Debt · Deflation · Economics · Exchange rate · Financial system · Geography · Inflation (cosmology · Interest rate · International economics · Macroeconomics · Monetary economics · Monetary policy · Real interest rate · Economic Theory and Policy

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Open DOIOpen Access