Download or read book The Puzzle of Brazil s High Interest Rates written by Mr.Alex Segura-Ubiergo and published by International Monetary Fund. This book was released on 2012-02-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper highlights that real interest rates in Brazil have declined substantially over time, but are still well above the average of emerging market inflation targeting regimes. The adoption of an inflation-targeting regime and better economic fundamentals (reduction in inflation volatility and improvements in the fiscal and external positions) has helped Brazil sustain significantly lower real interest rates than in the past. Going forward, the paper shows that Brazil can converge towards lower equilibrium real interest rates if domestic savings increase to the level of other emerging market countries. The effect is particularly pronounced if the increase in domestic savings is achieved through higher levels of public savings. Still, econometric results suggest that, controlling for everything else in the model, real interest rates in Brazil are about two full percentage points higher than in other countries in the sample, suggesting that there are still Brazil-specific factors that have not been captured by the empirical analysis. Some of these factors may include credit market segmentation and inflation inertia generated by still pervasive indexation practices.
Download or read book The Puzzle of Brazil s High Interest Rates written by Mr.Alex Segura-Ubiergo and published by International Monetary Fund. This book was released on 2012-02-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper highlights that real interest rates in Brazil have declined substantially over time, but are still well above the average of emerging market inflation targeting regimes. The adoption of an inflation-targeting regime and better economic fundamentals (reduction in inflation volatility and improvements in the fiscal and external positions) has helped Brazil sustain significantly lower real interest rates than in the past. Going forward, the paper shows that Brazil can converge towards lower equilibrium real interest rates if domestic savings increase to the level of other emerging market countries. The effect is particularly pronounced if the increase in domestic savings is achieved through higher levels of public savings. Still, econometric results suggest that, controlling for everything else in the model, real interest rates in Brazil are about two full percentage points higher than in other countries in the sample, suggesting that there are still Brazil-specific factors that have not been captured by the empirical analysis. Some of these factors may include credit market segmentation and inflation inertia generated by still pervasive indexation practices.
Download or read book Why are Brazil s Interest Rates So High written by Carlo A. Favero and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Is Brazil Different Risk Dollarization and Interest Rates in Emerging Markets written by Edmar L. Bacha and published by International Monetary Fund. This book was released on 2007-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the role of financial dollarization in the determination of real interest rates in emerging economies. In a simple analytical model, we show that a strategy of "dedollarizing" the economy, if it fails to address fundamental macroeconomic risks, leads to higher domestic real interest rates. We confirm this prediction in an empirical model, but find that the effect is small after controlling for the risks of dilution and default. Brazil provides a natural case study given its low degree of financial dollarization and very high real interest rates. The estimated model is unable to explain the high interest rate levels in the aftermath of Brazil's 1994 inflation stabilization. However, since the adoption in 1999 of inflation targeting and floating exchange rates, Brazil's real interest rates are gradually converging to the model's predicted values. The estimation also shows that further drops in Brazil's real interest rates could be achieved more effectively through improvements in fundamentals that lead to investment-grade status rather than through financial dollarization.
Download or read book Capitalism An Unsustainable Future written by Malcolm Sawyer and published by Taylor & Francis. This book was released on 2022-03-30 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: The four decades of neoliberalism, globalisation and financialisation have produced crises - financial and pandemic - and rising inequality. The climate emergency threatens the future of the planet. This book explores many dimensions of the background to these crises. There is the development of policy agendas to address the climate emergency. The rise in inequality is studied in terms of impacts of financialisation and the relationships between growth and inequality. The record of the neoliberal experiment in the USA is critically examined. The roles of financial institutions including public banks and micro-finance are explored, as is the need for improved financial oversight in the Economic and Monetary Union. The growth of global value chains has been a major aspect of globalisation, and the question is examined of whether such chains provide a ladder for development. Globalisation has also featured trade imbalances and large capital flows, and their causes and effects are examined with respect to China and South Africa respectively. This volume will be of great value to students, scholars and professionals interested in political economy, economic thought, climate change, sustainability and business studies. The chapters in this book were originally published as a special issue of the journal, International Review of Applied Economics.
Download or read book High interest rates in brazil a theoretical approach written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Esta dissertação visa propor e analisar, no contexto de modelos dinâmicosestocásticos de equilíbrio geral com rigidez de preços, possíveis explicações parao fato estilizado de que o juro no Brasil é excessivamente alto. As implicaçõesde diferentes hipóteses aplicadas aos modelos serão analisadas através de funçõesde resposta a impulso (FRIs). Será analisada, quando possível, a evidênciaempírica disponível na literatura a favor ou contra cada hipótese, e as FRIsmostrarão o comportamento dinâmico da economia calibrada sob cada hipótese. São compatíveis com um juro real básico mais alto por um período prolongado asseguintes hipóteses: alta taxa subjetiva de desconto intertemporal, alta indexaçãode preços, baixa potência da política monetária, e diminuição da credibilidade doBanco Central frente o crescimento da dívida pública (um caso de dominânciafiscal).
Download or read book Comparative Economics in a Transforming World Economy third edition written by J. Barkley Rosser, Jr. and published by MIT Press. This book was released on 2018-01-26 with total page 745 pages. Available in PDF, EPUB and Kindle. Book excerpt: An approach to comparative economic systems that avoids simple dichotomies to examine a wide variety of institutional and systemic arrangements, with updated country case studies. Comparative economics, with its traditional dichotomies of socialism versus capitalism, private versus state, and planning versus market, is changing. This innovative textbook offers a new approach to understanding different economic systems that reflects both recent transformations in the world economy and recent changes in the field.This new edition examines a wide variety of institutional and systemic arrangements, many of which reflect deep roots in countries' cultures and histories. The book has been updated and revised throughout, with new material in both the historical overview and the country case studies. It offers a broad survey of economic systems, then looks separately at market capitalism, Marxism and socialism, and “new traditional economies” (with an emphasis on the role of religions, Islam in particular, in economic systems). It presents case studies of advanced capitalist nations, including the United States, Japan, Sweden, and Germany; alternative paths in the transition from socialist to market economies taken by such countries as Russia, the former Soviet republics, Poland, China, and the two Koreas; and developing countries, including India, Iran, South Africa, Mexico, and Brazil. The new chapters on Brazil and South Africa complete the book's coverage of all five BRICS nations; the chapter on South Africa extends the book's comparative treatment to another continent. The chapter on Brazil with its account of the role of the Amazon rain forest as a great carbon sink expands the coverage of global environmental and sustainability issues. Each chapter ends with discussion questions.
Download or read book Handbook of BRICS and Emerging Economies written by P. B. Anand and published by Oxford University Press, USA. This book was released on 2021-01-16 with total page 1180 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook presents a comprehensive and multi-faceted analysis of the BRICS countries and other emerging economies, exploring their economic, social, environmental, and governance dimensions and challenges.
Download or read book Emerging Banking Systems written by P. Bongini and published by Springer. This book was released on 2015-12-17 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: In-depth analysis of the key players (China, India, Brazil, Russia, Turkey, Indonesia, North Africa) of the unprecedented international economic integration of the last 25 years. Despite their success, the fragilities of their banking systems pose constraints to domestic growth and risks to global financial stability.
Download or read book The Puzzle of Latin American Economic Development written by Patrice M. Franko and published by Rowman & Littlefield. This book was released on 2007 with total page 716 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides the basic economic tools for students to understand the problems in the countries of Latin America. This third edition analyzes challenges to the neoliberal model of development and highlights macroeconomic changes in the region. It explores the contradictions of growth, and focuses on factors of competitiveness.
Download or read book Brazil written by Michael Reid and published by Yale University Press. This book was released on 2014-06-10 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experts believe that Brazil, the world’s fifth largest country and its seventh largest economy, will be one of the most important global powers by the year 2030. Yet far more attention has been paid to the other rising behemoths Russia, India, and China. Often ignored and underappreciated, Brazil, according to renowned, award-winning journalist Michael Reid, has finally begun to live up to its potential, but faces important challenges before it becomes a nation of substantial global significance. After decades of military rule, the fourth most populous democracy enjoyed effective reformist leadership that tamed inflation, opened the country up to trade, and addressed poverty and other social issues, enabling Brazil to become more of an essential participant in global affairs. But as it prepares to host the 2014 soccer World Cup and 2016 Olympics, Brazil has been rocked by mass protest. This insightful volume considers the nation’s still abundant problems—an inefficient state, widespread corruption, dysfunctional politics, and violent crime in its cities—alongside its achievements to provide a fully rounded portrait of a vibrant country about to take a commanding position on the world stage.
Download or read book Inequality Democracy and Growth in Brazil written by Marcos Mendes and published by Academic Press. This book was released on 2014-11-19 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: In terms accessible to non-economists, Marcos José Mendes describes the ways democracy and inequality produce low growth in the short and medium terms. In the longer term, he argues that Brazil has two paths in front of it. One is to create the conditions necessary to boost economic performance and drive the country toward a high level of development. The other is to fail in untying the political knot that blocks growth, leaving it a middle-income country. The source of his contrasting futures for Brazil is inequality, which he demonstrates is a relevant variable in any discussion of economic growth. Inequality illuminates causes of seemingly-unconnected problems. This book, which includes freely-accessible documents and datasets, is the first in-depth analysis of an issue that promises to become increasingly prominent. Contrasting visions of Brazil’s future described in economic terms Easy-to-understand graphs and tables illustrate analytical arguments All Excel-based data available on a freely-accessible website
Download or read book Advancing Regional Monetary Cooperation written by L. Mühlich and published by Springer. This book was released on 2014-08-29 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines regional monetary cooperation as a strategy to enhance macroeconomic stability in developing countries and emerging markets. Interdisciplinary case studies on Southern Africa, Southeast Asia and South America provide a cross-regional perspective on the viability of such strategy.
Download or read book The New Brazilian Economy written by Elias C. Grivoyannis and published by Springer. This book was released on 2016-12-12 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edited collection provides a thorough historical, statistical, and institutional description of the current Brazilian economy and the previous economic structure from which it is emerging. The contributions explore the institutional economic and cultural forces shaping the current development of the Brazilian economy and discuss how they will influence future progress. Together, the chapters form a picture of the international implications of Brazil’s emergence as a major world economic power. Topics covered include the growth and shrinkage of industry, the consumption boom and the financial crisis, sustainable financial growth and public debt management, the evolution of antitrust policy and the privatization of state-owned firms, and more. Academics and researchers of BRICS countries and Latin American and Caribbean studies will find these contributions a valuable addition to their research.
Download or read book Politics Poverty and Microfinance written by Brian Warby and published by Lexington Books. This book was released on 2015-12-29 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the affect that government institutions have on whether or not microfinance contributes to poverty alleviation in the context of Latin America. It concludes that political and economic stability, as well as and law order, have a statistically significant impact on microfinance effectiveness. The conditions that promote poverty alleviation are not entirely the same as those upon which major microfinance investors base their funding decisions. The result is that much microfinance funding is going to the wrong places. This means that not only is microfinance not helping the poor, but under the wrong conditions it actually exacerbates poverty. The author arrives at these conclusions through a mixed methods approach, using both statistical analysis and case studies.
Download or read book Is Brazil Different Risk Dollarization and Interest Rates in Emerging Markets written by Fernando M. Goncalves and published by . This book was released on 2015 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the role of financial dollarization in the determination of real interest rates in emerging economies. In a simple analytical model, we show that a strategy of de-dollarizing the economy, if it fails to address fundamental macroeconomic risks, leads to higher domestic real interest rates. We confirm this prediction in an empirical model, but find that the effect is small after controlling for the risks of dilution and default. Brazil provides a natural case study given its low degree of financial dollarization and very high real interest rates. The estimated model is unable to explain the high interest rate levels in the aftermath of Brazil's 1994 inflation stabilization. However, since the adoption in 1999 of inflation targeting and floating exchange rates, Brazil's real interest rates are gradually converging to the model's predicted values. The estimation also shows that further drops in Brazil's real interest rates could be achieved more effectively through improvements in fundamentals that lead to investment-grade status rather than through financial dollarization.
Download or read book Real Exchange Rate Appreciation in Emerging Markets written by Marialuz Moreno Badia and published by International Monetary Fund. This book was released on 2014-01-10 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of emerging markets have experienced substantial real exchange rate appreciation in recent years, generating concerns about competitiveness and prompting policymakers to respond with a combination of mitigating policies. This paper shows that fiscal policy can play a role in alleviating these pressures. Using a sample of 28 emerging market economies over 1983-2011, we estimate a dynamic model of the real exchange rate and find that a permanent fiscal adjustment may reduce appreciation pressures over the long term. Furthermore, the composition of public spending matters, with reductions in current spending playing a key role. To illustrate the importance of these findings, the paper focuses on the case of Brazil. Our results suggest that maintaining fiscal discipline while increasing public investment in Brazil is likely to ease real appreciation pressures, highlighting the importance of tackling long-standing budget rigidities.
