Download or read book Capital Flows to Brazil in the Nineties written by Marcio G. P. Garcia and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The resumption of capital flows to developing countries in the nineties is intertwined in the Brazilian case with the attempts to achieve inflation stabilization. A very restrictive monetary policy has, since the last Quarter of 1991, offered probably the world's highest yield to fixed income investments. The huge interest rate differential constituted the main determinant of capital inflows to Brazil. The magnitude of those flows exacerbated two main macroeconomic problems: an increase in the quasi-fiscal deficit due to the interest payments on the debt used to sterilize the inflows, and, after the Real Plan. also the overvaluation of the currency. The restrictions to capital inflows are described and analyzed, as well as the main "financial engineering" strategies used to circumvent the restrictions. Given the advanced stage of domestic financial markets-including a powerful derivatives market-the restrictions imposed have not been effective in preventing the inflows of foreign capital to invest in the high-yield-public debt. Given the small progress achieved so far in the fiscal side of the reforms, it is also doubtful that the capital inflows' restrictions have been effective in a broader sense, that of allowing the government to buy time to implement the essential structural reforms. By reducing the urgency of the politically costly structural reforms aimed at increasing domestic savings, capital inflows are believed to have detrimental incentive effects on the government's resolve to push forward the stabilization plan.

Download or read book Capital Flows to Brazil written by Eliane A. Cardoso and published by International Monetary Fund. This book was released on 1997-09 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Brazil, as many other developing countries, has experienced a surge in capital inflows in the 1990s. Initially praised for eliminating a decade of restricted borrowing, the new flows soon raised traditional questions. Are the capital inflows temporary? How should authorities respond to the macroeconomic effects of large capital inflows, such as real appreciation and monetary or debt expansion? Should capital controls be introduced to change the volume and composition of capital flows?

Download or read book Capital Flows Capital Controls and Currency Crisis written by Marcio G. P. Garcia and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The resumption of capital flows to developing countries in the nineties is intertwined in the Brazilian case with the attempts to achieve inflation stabilization. A very restrictive monetary policy has offered probably the world's highest yield to fixed income investments. In the context of favorable external factors to capital flows, the huge interest rate differential caused massive short term capital inflows to Brazil. After 1995, foreign direct investment, mainly associated with the privatization process, has became more important as a source of foreign capital. During the first period, the magnitude of those flows exacerbated two main macroeconomic problems: an increase in the quasi-fiscal deficit due to the interest payments on the debt used to sterilize the inflows, and, after the Real Plan, also the overvaluation of the currency. The restrictions to capital inflows are described and analyzed, as well as the main "financial engineering" strategies used to circumvent the restrictions. Given the advanced stage of domestic financial markets--including a powerful derivatives market--the restrictions imposed have not been fully effective in preventing the inflows of short term foreign capital to invest in the high-yield-public debt, but they probably had a temporary effect. Given the small progress achieved so far in the fiscal side of the reforms, it is also doubtful that the capital inflows' restrictions have been effective in a broader sense, that of allowing the government to buy time to implement the essential structural reforms. By reducing the urgency of the politically costly structural reforms aimed at increasing domestic savings, capital inflows have detrimental incentive effects on the government's resolve to push forward the stabilization plan, as shown by the lack of commitment in carrying out the fiscal package promised during the Asian crisis. If the external finance package is successful in deterring the current daily losses of foreign reserves and in regaining the market's confidence, it remains to be seen if the current crisis was strong enough to make the newly reelected Brazilian government live up to its renewed promise of fiscal austerity.

Download or read book Capital flows capital controls and currency crisis written by Marcio Gomes Pinto Garcia and published by . This book was released on 1998 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows Capital Controls and Currency Crisis written by Márcio Gomes Pinto Garcia and published by . This book was released on 1998 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows to Brazil written by Mr.Ilan Goldfajn and published by International Monetary Fund. This book was released on 1997-09-01 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper creates an index of capital controls to analyze the determinants of capital flows to Brazil, accounting for the endogeneity of capital controls by considering a government that sets controls in response to capital flows. It finds that the government reacts strongly to capital flows by increasing controls on inflows during booms and relaxing them in moments of distress. The paper estimates a vector autoregression with capital flows, controls, and interest differentials. It shows that controls have been temporarily effective in altering levels and composition of capital flows but have had no sustained effects in the long run.

Download or read book Ineffective Controls on Capital Inflows Under Sophisticated Financial Markets written by Bernardo S. de M. Carvalho and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We analyze the Brazilian experience in the 1990s to access the effectiveness of controls on capital inflows in restricting financial inflows and changing their composition towards long term flows. Econometric exercises (VARs) showed that controls on capital inflows were effective in deterring financial inflows for only a brief period, from two to six months. The hypothesis to explain the ineffectiveness of the controls is that financial institutions performed several operations aimed at avoiding capital controls. To check this hypothesis, we conducted interviews with market players. We collected several examples of the financial strategies engineered to avoid the capital controls and invest in the Brazilian fixed income market. The main conclusion is that controls on capital inflows, while they may be desirable, are of very limited effectiveness under sophisticated financial markets"--National Bureau of Economic Research web site.

Download or read book Private International Capital Flows to Brazil written by Dionísio Dias Carneiro Netto and published by . This book was released on 1995 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private International Capital Flows to Brazil written by Dionísio Dias Carneiro and published by . This book was released on 1995 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows Capital Controls and Currency Crises written by Felipe Larraín B. and published by University of Michigan Press. This book was released on 2000 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the resurgence in private capital inflows experienced by Latin America during the 1990s

Download or read book Migration and Human Capital in Brazil During the 1990s written by Norbert M. Fiess and published by World Bank Publications. This book was released on 2003 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private international capital flows to Brazil written by Dionisio Dias Carneiro and published by . This book was released on 1995 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows Monetary Instability and Financial Sector Reform in Brazil written by Alvaro Antônio Zini Júnior and published by . This book was released on 1994 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Large Capital Flows written by Mr.Alejandro Lopez Mejia and published by International Monetary Fund. This book was released on 1999-02-01 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the causes, consequences, and policy responses to large capital flows in several emerging markets. It opens by studying recent patterns of capital flows, and then discusses the causes of capital flows. Emphasis is given to the reasons behind the capital inflow episode in the 1990s, the major reversals, and the volatility observed in these flows. The paper goes on to examine the consequences of capital inflows and the pros and cons of alternative policy responses. It concludes with policy lessons derived from country experiences.

Download or read book Capital Flows in Brazil written by Thais Cardoso and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows Capital Controls and Currency Crises written by Felipe Larraín B. and published by . This book was released on 2000 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the resurgence in private capital inflows experienced by Latin America during the 1990s

Download or read book Capital Flows and Controls in Brazil what Have Learned written by Ilan Goldfajn and published by . This book was released on 2005 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: