2012
DOI: 10.1590/s0101-31572012000300002
|View full text |Cite
|
Sign up to set email alerts
|

The "hot money" phenomenon in Brazil

Abstract: Because of its high interest rates, Brazil attracts more and more speculative capital flows, called "hot money", under the form of foreign loans, direct or portfolio investments. Actually, the country is directly involved in a carry-trade strategy that tends to appreciate the real, what penalizes the Brazilian exportations of manufactured products. Moreover, capital inflows are extremely volatile, and their departure, causing a fall in loans granted to the Brazilian private banks, could provoke a dangerous bur… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

0
4
0
1

Year Published

2014
2014
2020
2020

Publication Types

Select...
4
2

Relationship

0
6

Authors

Journals

citations
Cited by 7 publications
(5 citation statements)
references
References 6 publications
0
4
0
1
Order By: Relevance
“…The export revenues from soy production have contributed to an increase in the value of the Brazilian currency, which increases consumers' purchasing power in world markets. On the other hand, the appreciation of the Brazilian Real reduces the competitiveness of Brazilian manufactured goods in world markets, which may decrease employment opportunities in the manufacturing sector (Gaulard 2012).…”
Section: Macroeconomic Conditionsmentioning
confidence: 99%
“…The export revenues from soy production have contributed to an increase in the value of the Brazilian currency, which increases consumers' purchasing power in world markets. On the other hand, the appreciation of the Brazilian Real reduces the competitiveness of Brazilian manufactured goods in world markets, which may decrease employment opportunities in the manufacturing sector (Gaulard 2012).…”
Section: Macroeconomic Conditionsmentioning
confidence: 99%
“…In fact, real estate prices in Brazil have raised rapidly in the last few years, and some analysts have been arguing the possibility that a bubble has been inflated and could potentially burst [35,36,37,38,39]. In contrast, others argue that the pricing growth is sustainable and based on fundamentals, since Brazil was one of the fastest-growing major economies in the world in recent years with an average annual Gross Domestic Product (GDP) growth rate of over 5 percent, which made Brazilian economy the world's seventh largest by nominal GDP by the end of 2012.…”
Section: Introductionmentioning
confidence: 99%
“…The huge gaps between domestic and international interest rates are behind the boom in inflows of FDI and 'hot money'. For a detailed account, see Gaulard (2012).…”
Section: Why Did the Akp And The Pt Rely On The Poor? Globalization mentioning
confidence: 99%