Was there an alternative to the Brazilian crisis?
ABSTRACT 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, reduci...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Editora 34
2022-04-01
|
| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571999000300426&tlng=en |
| _version_ | 1811339400201633792 |
|---|---|
| author | J. A. KREGEL |
| author_facet | J. A. KREGEL |
| author_sort | J. A. KREGEL |
| collection | DOAJ |
| description | ABSTRACT 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. |
| first_indexed | 2024-04-13T18:25:13Z |
| format | Article |
| id | doaj.art-e33abc41d7234e44954e0c369842d515 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-04-13T18:25:13Z |
| publishDate | 2022-04-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-e33abc41d7234e44954e0c369842d5152022-12-22T02:35:16ZengEditora 34Brazilian Journal of Political Economy1809-45382022-04-0119342644110.1590/0101-31571999-1189Was there an alternative to the Brazilian crisis?J. A. KREGELABSTRACT 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.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571999000300426&tlng=enFinancial crisescapital flowsPlano Realglobalization |
| spellingShingle | J. A. KREGEL Was there an alternative to the Brazilian crisis? Brazilian Journal of Political Economy Financial crises capital flows Plano Real globalization |
| title | Was there an alternative to the Brazilian crisis? |
| title_full | Was there an alternative to the Brazilian crisis? |
| title_fullStr | Was there an alternative to the Brazilian crisis? |
| title_full_unstemmed | Was there an alternative to the Brazilian crisis? |
| title_short | Was there an alternative to the Brazilian crisis? |
| title_sort | was there an alternative to the brazilian crisis |
| topic | Financial crises capital flows Plano Real globalization |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571999000300426&tlng=en |
| work_keys_str_mv | AT jakregel wasthereanalternativetothebraziliancrisis |