Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Brazil 2 - College Essays

Brazil 2


On January 12, 1999, over a billion dollars fled Brazil. Three days later, the Central Bank attempted to bring about a limited devaluation of the Brazilian currency, the real, but it failed to prevent a free fall. Over the next two days, another $3 billion was pulled out, and by the end of the month, the real had lost over 40 percent of its value. The Central Bank president resigned, his successor lasted a week, and as speculative attacks continued, President Fernando Henrique Cardoso, in some desperation, sought out one of international financier George Soros's closest associates, Arminio Fraga, for the job. Fraga used to manage a fund that took bets on macroeconomic changes, such as ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

sector; and astronomic and unsustainable interest rates.
For Brazil's partners in Mercosurthe common market that joins Argentina, Paraguay, Uruguay, and Brazil-its plunge into recession and the quantum leap in the price of their own exports in the Brazilian market (especially for Argentina, which has locked its own currency into a one-to-one relationship with the U.S. dollar by means of a currency board) has put enormous strains on the fledgling trade bloc. Other Latin American governments worried that investors would not differentiate between Brazil and the rest of the region, slowing down access to the foreign capital needed to meet their own borrowing requirements. The rest of the world grew fearful of "contagion." For the International Monetary Fund (IMF) and the U.S. Treasury (and ultimately the American taxpayer), which gambled in November 1998 that a huge $41.5 billion package of multilateral assistance for Brazil would sustain the value of the real, the realization began ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.


Already a member? Login

also consumer goods.
The flip side of this rosy picture was heavy borrowing on the international financial markets-"external savings" as the economists put it with Orwellian obfuscation. Brazil was not alone in this game, since it was an integral part of the new equation whereby the liquidity of global capital flows made such deficit financing highly profitable. Brazil was, after all, now an "emerging market," and a very big one at that. It was no longer "third world" or "underdeveloped" or even "developing," much less a country with a history, institutions, and a young democracy shaking off the legacy of two decades of authoritarian rule. To money managers in New York, London, and ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


CITE THIS PAGE:

Brazil 2. (2008, March 20). Retrieved March 29, 2024, from http://www.essayworld.com/essays/Brazil-2/80829
"Brazil 2." Essayworld.com. Essayworld.com, 20 Mar. 2008. Web. 29 Mar. 2024. <http://www.essayworld.com/essays/Brazil-2/80829>
"Brazil 2." Essayworld.com. March 20, 2008. Accessed March 29, 2024. http://www.essayworld.com/essays/Brazil-2/80829.
"Brazil 2." Essayworld.com. March 20, 2008. Accessed March 29, 2024. http://www.essayworld.com/essays/Brazil-2/80829.
JOIN NOW
Join today and get instant access to this and 50,000+ other essays


PAPER DETAILS
Added: 3/20/2008 12:06:50 PM
Category: World History
Type: Premium Paper
Words: 5127
Pages: 19

Save | Report

SHARE THIS PAPER

SAVED ESSAYS
Save and find your favorite essays easier

SIMILAR ESSAYS
» Primary Energy Sources In Brazi...
» Vargas of Brazil and Peron of A...
» Brazil Context
» Favelas in Brazil
» Brazil and Venezuela: Left vs R...
» Dolphins 2
» Leprosy 2
» Jaguars 2
» Definition 2
» Impact Of NAFTA On Canada's Eco...
Copyright | Cancel | Contact Us

Copyright © 2024 Essayworld. All rights reserved