Capital Flows and Controls in Brazil: What Have We Learned?
NBER Working Paper No. 11640
This paper analyzes the relationship between capital account liberalization and macroeconomic volatility using Brazil as a case study. The paper provides several stylized facts regarding the evolution of capital flows and controls in Brazil in the last three decades. We conclude that, notwithstanding the financial crises and macroeconomic volatility of the recent past, capital account liberalization and the floating exchange regime have led to a more resilient economy. Further liberalization of the capital account is warranted and should be accompanied by a broad range of reforms to improve and foster stronger institutions.
Published: Capital Flows and Controls in Brazil: What Have We Learned?, Ilan Goldfajn, André Minella, in Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences (2007), University of Chicago Press
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