The Achilles’ Heel of the Brazilian Economy

Felix Blossier de Casabianca
Additional contact information
Felix Blossier de Casabianca: Sciences Po, Paris, France

Journal of Developing Societies, 2011, vol. 27, issue 1, 1-10

Abstract: Brazil’s important inflation problems were cured by the 1994 Real Plan, but this monetary reform also resulted in a very high SELIC rate, the central bank’s overnight lending rate. More than 15 years after this reform and in spite of excellent economic indicators, interest rates in Brazil are still abnormally high, thus restricting credit and undermining the country’s development. The purpose of the present article is to analyze the factors at the root of such high interest rates in order to see that a central bank reform appears to be the best solution to tackle these elevated interest rates.

Keywords: Brazil; interest rates; inflation; central bank (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0169796X1002700101 (text/html)

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:sae:jodeso:v:27:y:2011:i:1:p:1-10

DOI: 10.1177/0169796X1002700101

Access Statistics for this article

More articles in Journal of Developing Societies
Bibliographic data for series maintained by SAGE Publications ().