The 1999 Brazilian financial crisis: how to create a financial crisis by trying to avoid one
Carregando...
Data
2012
Autores
Orientador(res)
Métricas
Título da Revista
ISSN da Revista
Título de Volume
Resumo
This paper attempts to understand the Brazilian financial crisis mainly from an ‘endogenous-failure’ perspective. It argues that the general mechanisms that led to this financial crisis were in essence endogenous to the workings of an economy facing a sudden liberalisation, a surge in capital inflows, ineffective regulation and weak governance. This paper will also argue that within this general framework, there is a very specific ‘Minskyian’ feature to the Brazilian crisis, which made it different from other financial crises both in Latin America and in East Asia: how a particularly radical monetary policy led to a major financial fragility in the financial sector and State finances, and to an unmanageable Ponzi finance in the accounts of the Federal Government.