Capital account regulation as part of the macroeconomic regime: comparing Brazil in the 1990s and 2000s

Barbara Fritz and Daniela Magalhães Prates
Additional contact information
Barbara Fritz: Professor of Economics, Institute for Latin American Studies, Freie Universität Berlin, Germany
Daniela Magalhães Prates: Associate Professor of Economics, University of Campinas, Unicamp, Brazil and CNPq researcher

European Journal of Economics and Economic Policies: Intervention, 2018, vol. 15, issue 3, 313-334

Abstract: Capital account regulation (CAR) has experienced profound reconsideration since the global financial crisis. This new debate focuses on the macroeconomic gains of regulating international capital flows in terms of reducing external and financial vulnerability, but it does not consider relevant aspects relating to the context in which these regulations are implemented. In this paper, we undertake a comparative analysis of similar types of CAR applied in Brazil during the 1990s and 2000s. Based on this analysis, we conclude that for the design of CAR, which is relevant for its effectiveness, institutional features of both the financial market and the macroeconomic regime, shaped by macroeconomic constraints, are relevant. For the case of Brazil, we conclude that, contrary to the 2000s, the strong preference given to inflation stabilization in the 1990s, together with high external vulnerability, strongly limited the CAR's design of this period.

Keywords: macroeconomic regime; capital account regulation; capital flows; emerging economies (search for similar items in EconPapers)
JEL-codes: E6 F3 F4 F6 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/view/journals/ejeep/15-3/ejeep.2018.03.05.xml (application/pdf)
Restricted access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:15:y:2018:i:3:p313-334

Access Statistics for this article

European Journal of Economics and Economic Policies: Intervention is currently edited by Torsten Niechoj

More articles in European Journal of Economics and Economic Policies: Intervention from Edward Elgar Publishing
Bibliographic data for series maintained by Phillip Thompson ().