Exchange rate based stabilization plans: the Brazilian experience with a target zone regime

Detalhes bibliográficos
Autor(a) principal: Silva, Maria Luiza Falcão
Data de Publicação: 1998
Outros Autores: Torrance, Thomas S.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Economia Aplicada
Texto Completo: https://www.revistas.usp.br/ecoa/article/view/217745
Resumo: This paper analyzes Brazil's recent experience with an exchange rate based stabilization program, the Piano Real, its development and future possibilities. The feature of using the exchange rate as an anchor in a disinflation program and the role ofits credibility and its interaction with expectations regarding the sustainability and political feasibility of government stabilization policies are examined. Finally, the problems that have arisen while establishing new institutional arrangements, such as a new currency or a policy rule for monetary base creation, and the evolution ofthe main economic indicators, during and after the implementation ofthe program, are briefly discussed in an attemptto draw from this stabilization experiment lessons for the future. The effects ofthe Mexican crisis of December 1994 upon the performance ofthe Brazilian economy are also emphasized.
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spelling Exchange rate based stabilization plans: the Brazilian experience with a target zone regimeReal Planstabilization policiescredibilityexchange rate based stabilization programsThis paper analyzes Brazil's recent experience with an exchange rate based stabilization program, the Piano Real, its development and future possibilities. The feature of using the exchange rate as an anchor in a disinflation program and the role ofits credibility and its interaction with expectations regarding the sustainability and political feasibility of government stabilization policies are examined. Finally, the problems that have arisen while establishing new institutional arrangements, such as a new currency or a policy rule for monetary base creation, and the evolution ofthe main economic indicators, during and after the implementation ofthe program, are briefly discussed in an attemptto draw from this stabilization experiment lessons for the future. The effects ofthe Mexican crisis of December 1994 upon the performance ofthe Brazilian economy are also emphasized.Universidade de São Paulo, FEA-RP/USP1998-02-12info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://www.revistas.usp.br/ecoa/article/view/21774510.11606/1413-8050/ea217745Economia Aplicada; Vol. 2 Núm. 1 (1998); 31-64Economia Aplicada; Vol. 2 No. 1 (1998); 31-64Economia Aplicada; v. 2 n. 1 (1998); 31-641980-53301413-8050reponame:Economia Aplicadainstname:Universidade de São Paulo (USP)instacron:USPenghttps://www.revistas.usp.br/ecoa/article/view/217745/199098Copyright (c) 1998 Economia Aplicadahttp://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccessSilva, Maria Luiza Falcão Torrance, Thomas S. 2023-10-26T13:13:56Zoai:revistas.usp.br:article/217745Revistahttps://www.revistas.usp.br/ecoaPUBhttps://www.revistas.usp.br/ecoa/oai||revecap@usp.br1980-53301413-8050opendoar:2023-10-26T13:13:56Economia Aplicada - Universidade de São Paulo (USP)false
dc.title.none.fl_str_mv Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
title Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
spellingShingle Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
Silva, Maria Luiza Falcão
Real Plan
stabilization policies
credibility
exchange rate based stabilization programs
title_short Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
title_full Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
title_fullStr Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
title_full_unstemmed Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
title_sort Exchange rate based stabilization plans: the Brazilian experience with a target zone regime
author Silva, Maria Luiza Falcão
author_facet Silva, Maria Luiza Falcão
Torrance, Thomas S.
author_role author
author2 Torrance, Thomas S.
author2_role author
dc.contributor.author.fl_str_mv Silva, Maria Luiza Falcão
Torrance, Thomas S.
dc.subject.por.fl_str_mv Real Plan
stabilization policies
credibility
exchange rate based stabilization programs
topic Real Plan
stabilization policies
credibility
exchange rate based stabilization programs
description This paper analyzes Brazil's recent experience with an exchange rate based stabilization program, the Piano Real, its development and future possibilities. The feature of using the exchange rate as an anchor in a disinflation program and the role ofits credibility and its interaction with expectations regarding the sustainability and political feasibility of government stabilization policies are examined. Finally, the problems that have arisen while establishing new institutional arrangements, such as a new currency or a policy rule for monetary base creation, and the evolution ofthe main economic indicators, during and after the implementation ofthe program, are briefly discussed in an attemptto draw from this stabilization experiment lessons for the future. The effects ofthe Mexican crisis of December 1994 upon the performance ofthe Brazilian economy are also emphasized.
publishDate 1998
dc.date.none.fl_str_mv 1998-02-12
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://www.revistas.usp.br/ecoa/article/view/217745
10.11606/1413-8050/ea217745
url https://www.revistas.usp.br/ecoa/article/view/217745
identifier_str_mv 10.11606/1413-8050/ea217745
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://www.revistas.usp.br/ecoa/article/view/217745/199098
dc.rights.driver.fl_str_mv Copyright (c) 1998 Economia Aplicada
http://creativecommons.org/licenses/by-nc/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 1998 Economia Aplicada
http://creativecommons.org/licenses/by-nc/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade de São Paulo, FEA-RP/USP
publisher.none.fl_str_mv Universidade de São Paulo, FEA-RP/USP
dc.source.none.fl_str_mv Economia Aplicada; Vol. 2 Núm. 1 (1998); 31-64
Economia Aplicada; Vol. 2 No. 1 (1998); 31-64
Economia Aplicada; v. 2 n. 1 (1998); 31-64
1980-5330
1413-8050
reponame:Economia Aplicada
instname:Universidade de São Paulo (USP)
instacron:USP
instname_str Universidade de São Paulo (USP)
instacron_str USP
institution USP
reponame_str Economia Aplicada
collection Economia Aplicada
repository.name.fl_str_mv Economia Aplicada - Universidade de São Paulo (USP)
repository.mail.fl_str_mv ||revecap@usp.br
_version_ 1800221692845359104

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