The "hot money" phenomenon in Brazil

Revista de Economia Política

Mylène Gaulard¹ 

[1] ,ISTOM, School of Engineers in International Agro-DevelopmentParis,France

关键词: Brazil;    carry-trade;    capital inflows;    speculative bubbles;   

DOI  :  10.1590/S0101-31572012000300002

来源: SciELO

【 摘 要 】

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.

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