A Critical Evaluation of the Proposal for Currency Convertibility of the Real

Vol. 25 No. 1 (2005)

Jan-Mar / 2005
Published January 1, 2005
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Ferrari Filho, Fernando, Frederico G. Jayme Jr., Gilberto Tadeu Lima, José Luís Oreiro, and Luiz Fernando de Paula. 2005. “A Critical Evaluation of the Proposal for Currency Convertibility of the Real”. Brazilian Journal of Political Economy 25 (1):154-73. https://doi.org/10.1590/0101-35172005-1296.
ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

A Critical Evaluation of the Proposal for Currency Convertibility of the Real

Fernando Ferrari Filho
Professor Titular de Economia da Universidade Federal do Rio Grande do Sul – UFRGS, Porto Alegre-RS, Brasil.
Frederico G. Jayme Jr.
Professor de Economia da Universidade Federal de Minas Gerais – UFMG, Belo Horizonte-MG, Brasil.
Gilberto Tadeu Lima
Professor de Economia da Universidade de São Paulo -USP, São Paulo-SP, Brasil.
José Luís Oreiro
Professor de Economia da Universidade Federal do Paraná – UFPR, Curitiba-PR, Brasil.
Luiz Fernando de Paula
Professor de Economia da Universidade do Estado do Rio de Janeiro – UERJ, Rio de Janeiro- RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 25 No. 1 (2005), Jan-Mar / 2005, Pages 154-173

Abstract

This paper aims at discussing critically Persio Arida’s proposal of adopting currency convertibility in Brazil. Arida (2003a, 2003b, 2004) points out that currency convertibility would make for lower domestic interest rates in Brazil, as well as for lower interest rates for the Brazilian external bonds. Besides, currency convertibility would stabilize capital flows, as well as exchange rate volatility in Brazil. We argue in this paper that this proposal does not lead necessarily either to less exchange rate volatility, or to lower interest rates. Besides, we close the paper by presenting some alternatives in terms of capital controls in Brazil.

JEL Classification: E0; E6; F4.


Keywords: Financial liberalization capital account convertibility Brazilian economy

Most read articles by the same author(s)

1 2 3 4 5 > >>