scholarly journals Capital account regulation in Brazil: An assessment of the 2009-2013 period

2017 ◽  
Vol 37 (1) ◽  
pp. 108-129 ◽  
Author(s):  
DANIELA MAGALHÃES PRATES ◽  
LUIZ FERNANDO DE PAULA
Keyword(s):  
Capital Flows ◽  
Emerging Countries ◽  
Current Approach ◽  
Capital Account ◽  
Policy Effectiveness ◽  
Brazilian Government ◽  
Account Regulation ◽  
The Imf

ABSTRACT Brazil was one of the emerging countries that had a stronger trend of currency appreciation from the 2nd quarter of 2009 to July 2011. Under this context that can be understood the implementation of capital account regulation (CAR) after 2009, which was complemented with another kind of regulation, the so-called FX Derivatives Regulation (FXDR). This paper shows that only when Brazilian government adopted these two kinds of regulations simultaneously, the policy effectiveness increased in terms of protecting the Brazilian currency from upward pressures. Brazilian experience also highlights that it is not possible to establish a hierarchy between temporary instruments to manage capital flows and permanent prudential measures, as supported by the IMF current approach.

scholarly journals Capital account regulation as part of the macroeconomic regime: comparing Brazil in the 1990s and 2000s

2018 ◽  
Vol 15 (3) ◽  
pp. 313-334 ◽  
Author(s):  
Barbara Fritz ◽  
Daniela Magalhães Prates
Keyword(s):  
Comparative Analysis ◽  
Financial Crisis ◽  
Financial Market ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
Capital Account ◽  
International Capital ◽  
Inflation Stabilization ◽  
Account Regulation ◽  
The Global Financial Crisis

Capital account regulation (CAR) has experienced profound reconsideration since the global financial crisis. This new debate focuses on the macroeconomic gains of regulating international capital flows in terms of reducing external and financial vulnerability, but it does not consider relevant aspects relating to the context in which these regulations are implemented. In this paper, we undertake a comparative analysis of similar types of CAR applied in Brazil during the 1990s and 2000s. Based on this analysis, we conclude that for the design of CAR, which is relevant for its effectiveness, institutional features of both the financial market and the macroeconomic regime, shaped by macroeconomic constraints, are relevant. For the case of Brazil, we conclude that, contrary to the 2000s, the strong preference given to inflation stabilization in the 1990s, together with high external vulnerability, strongly limited the CAR's design of this period.

Effectiveness of capital account regulation: Lessons from Brazil and Peru

2019 ◽  
Vol 64 ◽  
pp. 176-194
Author(s):  
Pablo Aguirre ◽  
José Antonio Alonso ◽  
Miguel Jerez
Keyword(s):  
Capital Account ◽  
Account Regulation

Measuring and explaining the volatility of capital flows to emerging countries

2011 ◽  
Vol 35 (8) ◽  
pp. 1941-1953 ◽  
Author(s):  
Carmen Broto ◽  
Javier Díaz-Cassou ◽  
Aitor Erce
Keyword(s):  
Capital Flows ◽  
Emerging Countries
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