Abstract

"Anchors Away: The Cost and Benefits of Brazil's Devaluation"

Edmund Amann and Werner Baer

First Author :

Edmund Amann
University of Illinois at Urbana-Champaign

Second Author :

Werner Baer
Economics
The University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

wbaer@uiuc.edu

http://www.business.uiuc.edu/faculty/baer.html

Abstract :

This paper analyses the impact of Brazil’s devaluation in 1999. This event represents an abandonment of the exchange rate anchor which had been used as a stabilisation plan since the introduction of the Real Plan in 1994. The reasons surrounding the abandonment of the exchange rate anchor are determined as well as the explanation for its benign impact.

Manuscript Received : 2002

Manuscript Published : 2002

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