Canaries and Vultures: A Quantitative History of Monetary Mismanagement in Brazil

Pedro Albuquerque and Solange Gouvea
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Solange Gouvea: Central Bank of Brazil

Development and Comp Systems from University Library of Munich, Germany

Abstract: 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: N16 O23 O54 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2005-11-23
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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Citations: View citations in EconPapers (2)

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https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0511/0511027.pdf (application/pdf)

Related works:
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)
Working Paper: Using a Money Demand Model to Evaluate Monetary Policies in Brazil (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpdc:0511027

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