Canaries and Vultures: A Quantitative History of Monetary Mismanagement in Brazil
Pedro Albuquerque and
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Solange Gouvea: Central Bank of Brazil
Development and Comp Systems from EconWPA
During the last two decades of the twentieth century, Brazil went through a sequence of failed stabilization plans that tried to cope with an enduring hyperinflation. This paper uses a money demand model to evaluate monetary policies during those episodes. The consistency between the money supply and the expected conditional money demand growth rates is considered for each plan. It is shown that the unsuccessful programs were marked by excessive liquidity. The results not only suggest that the mismanagement of the monetary aggregates led to the failure of the plans, but also that the excessive liquidity could have been predicted.
Keywords: Money Demand; Money Supply; Monetary Policy; Inflation; Stabilization; Brazil (search for similar items in EconPapers)
JEL-codes: O23 O54 N16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Note: Type of Document - pdf; pages: 34
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Journal Article: Canaries and vultures: A quantitative history of monetary mismanagement in Brazil (2009)
Working Paper: Canaries and Vultures: A Quantitative History of Monetary Mismanagement in Brazil (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0511027
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