TY - JOUR AU - Bresser-Pereira, Luiz Carlos AU - Farhi, Maryse AU - Prates, Daniela Magalhães AU - Freitas, Maria Cristina Penido de AU - Cintra, Marcos Antonio Macedo AU - Hermann, Jennifer AU - Mendonça, Ana Rosa Ribeiro de AU - Filho, Fernando Ferrari AU - Paula, Luiz Fernando de AU - Sicsú, João AU - Oreiro, José Luís da Costa AU - Basilio, Flávio Augusto Correa AU - Gala, Paulo PY - 2009/01/01 Y2 - 2024/03/29 TI - The 2008 financial crisis JF - Brazilian Journal of Political Economy JA - BJPE VL - 29 IS - 1 SE - DO - UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/474 SP - 133-149 AB - <p>In developing countries there is a tendency to the overvaluation of the exchange rate. It has two structural causes: the Dutch disease and the attraction that higher profit and interest rates usually prevailing in developing countries exert on foreign capitals, and four policy causes: the growth with foreign savings policy, the control of inflation to exchange rate anchors, the ‘capital deepening’ policy, and exchange rate populism. Either the country neutralizes this tendency and grows fast, or does not and will suffer cyclical balance of payment crises.</p> ER -