Anchors Away: The Cost and Benefits of Brazil’s Devaluation

This paper analyzes the impact of Brazil’s devaluation in 1999. This event represents an abandonment of the exchange rate anchor which had been used as a stabilization plan since the introduction of the Real Plan in 1994. The reasons behind the abandonment of the exchange rate anchor are determined...

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Veröffentlicht in:World development 2003-06, Vol.31 (6), p.1033-1046
Hauptverfasser: Amann, Edmund, Baer, Werner
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Baer, Werner
description This paper analyzes the impact of Brazil’s devaluation in 1999. This event represents an abandonment of the exchange rate anchor which had been used as a stabilization plan since the introduction of the Real Plan in 1994. The reasons behind the abandonment of the exchange rate anchor are determined as well as the explanation for its benign impact.
doi_str_mv 10.1016/S0305-750X(03)00048-2
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source RePEc; Applied Social Sciences Index & Abstracts (ASSIA); Access via ScienceDirect (Elsevier)
subjects Brazil
Cost benefit analysis
Currency
Devaluation
Development studies
Exchange rates
International monetary relations
Monetary economics
Stabilization policy
title Anchors Away: The Cost and Benefits of Brazil’s Devaluation
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