The "hot money" phenomenon in Brazil
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 pe...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Editora 34
2012-09-01
|
| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000300002&lng=en&tlng=en |
| id |
doaj-73c11feba5904c7a8fbb4f3a254fff15 |
|---|---|
| record_format |
Article |
| spelling |
doaj-73c11feba5904c7a8fbb4f3a254fff152020-11-25T00:10:20ZengEditora 34Brazilian Journal of Political Economy1809-45382012-09-0132336738810.1590/S0101-31572012000300002S0101-31572012000300002The "hot money" phenomenon in BrazilMylène Gaulard0ISTOM, School of Engineers in International Agro-DevelopmentBecause 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 burst of the speculative bubble they have contributed to form in the Brazilian real estate sector.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000300002&lng=en&tlng=enBrazilcarry-tradecapital inflowsspeculative bubbles |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Mylène Gaulard |
| spellingShingle |
Mylène Gaulard The "hot money" phenomenon in Brazil Brazilian Journal of Political Economy Brazil carry-trade capital inflows speculative bubbles |
| author_facet |
Mylène Gaulard |
| author_sort |
Mylène Gaulard |
| title |
The "hot money" phenomenon in Brazil |
| title_short |
The "hot money" phenomenon in Brazil |
| title_full |
The "hot money" phenomenon in Brazil |
| title_fullStr |
The "hot money" phenomenon in Brazil |
| title_full_unstemmed |
The "hot money" phenomenon in Brazil |
| title_sort |
"hot money" phenomenon in brazil |
| publisher |
Editora 34 |
| series |
Brazilian Journal of Political Economy |
| issn |
1809-4538 |
| publishDate |
2012-09-01 |
| description |
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 burst of the speculative bubble they have contributed to form in the Brazilian real estate sector. |
| topic |
Brazil carry-trade capital inflows speculative bubbles |
| url |
http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000300002&lng=en&tlng=en |
| work_keys_str_mv |
AT mylenegaulard thehotmoneyphenomenoninbrazil AT mylenegaulard hotmoneyphenomenoninbrazil |
| _version_ |
1725408112341417984 |