Just Another BRIC in the Wall? A Comparison of Recent Brazilian and Turkish Economic Developments

This paper compares various macro-prudential and policy tools, set against various aspects of the countries' recent political economies, used by Brazil and Turkey to address some issues currently affecting the more attractive emerging markets: international capital inflows, inflation, and, current account deficits. By looking at two of these vibrant emerging economies, and examining their respective approaches to managing the domestic side effects of increased liquidity in the global financial system, this paper seeks to divine lessons for other policy makers and analysts.