Brazilian Financial Markets Analyzing the Integration of (original) (raw)

Abstract

Brazil’s economic importance has increased substantially in the past 10 years; the country is consistently ranked among the 10 largest economies in the world. However, despite relevant improvements in the past decade, Brazil’s financial and capital markets still have room to grow and to further support long term sustainable economic development. The present report is the product of a UK-Brazil cooperation research project aimed at addressing important challenges to help further integrate Brazil into global financial markets.

Loading...

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

References (106)

  1. Part I Akyüz, Y. (2014). "Internationalization of Finance and Changing Vulnerabilities in Developing and Emerging Countries." Unctad Discussion Papers 217.
  2. Allen, F. (2011). Cross-border banking in Europe: implications for financial stability and macroeconomic policies, CEPR.
  3. Andrade, R. P. and Prates, D. M. (2013): Exchange Rate Dynamics in a Peripheral Monetary Economy: A Keynesian Perspective. In: Journal of Post Keynesian Economics, vol. 35, 399- 416.
  4. Arestis, P. and Glickman, M. (2002): Financial crisis in Southeast Asia: dispelling illusion the Minskyan way. In: Cambridge Journal of Economics, 26, 237-261.
  5. Avdjiev, S., R. McCauley and H. S. Shin (2015). "Breaking Free of the Triple Coincidence in International Finance." Economic Policy 62nd Panel Meeting, Hosted by the Banque Centrale du Luxembourg(Luxembourg, 16-17 October 2015).
  6. Ban, C. and Blyth, M. (2013). " The BRICs and the Washington Consensus: An introduction". Review of International Political Economy 20(2), 241-255.
  7. Bank of England (2015). Interview conducted on 29th September 2015, London.
  8. Baumann, B. A. and Gallagher, K. P. (2013): Post-Crisis Capital Account Regulation in South Korea and South Africa. In: Political Economy Research Institute, Working Paper Series, No. 320, April 2013.
  9. Becker, J. 2002. Akkumulation, Regulation, Territorium. Zur kritischen Rekonstruktion der französischen Regulationstheorie. Marburg: Metropolis.
  10. Becker, J. (2006): Metamorphosen der Regionalen Integration. Journal für Entwicklungspolitik (JEP) XXII (2), 11-44.
  11. Becker, J., Jäger, J., Leubolt, B. and Weissenbacher, R. (2010): Peripheral Financialization and Vulnerability to Crisis: A Regulationist Perspective. Competition & Change, 14, 225- 247. Belfrage, C. (2008): Towards ´Universal Financialization' in Sweden?. Contemporary Politics, 14, 77-296.
  12. Belfrage, C. (2013) "Challenges for strengthening Mercosul financial integration -lessons from the European Experience", Report written under the Project Trade Liberalisation and Economic Development in Mercosul -PPY BRA 1018, an Agreement between the Brazilian Central Bank and the British Embassy in Brazil, published as Official Mercosul Documentation in Annex VI of XXXIV SGT-4 Minutes.
  13. Belfrage, C. (2015) "The Unintended Consequences of Financialisation: Social Democracy Hamstrung? Pensions Dilemma", Economic and Industrial Democracy, published on onlinefirst: doi:10.1177/0143831X15586070
  14. Belfrage, C., Grumuller, J. Jäger and Kaltenbrunner, A. (2016). "Currency Internationalisation: Combining Critical Political Economy and Post-Keynesian Insights", presented at the 7th Annual conference in Political Economy, Lisbon, 7th of September.Belfrage, C. and Kallifatides, M. (2016). "The Impossibility of Depoliticized Macroprudential Regulation: the Swedish Case", presented at the 2016 colloquium for the European Group of Organization Studies.
  15. Belfrage, C. and Kallifatides, M. (2016). "Financialization and the Crisis-tendencies in the New Swedish Model", presented at the seminar series of the Center for Governance and Management Studies, Stockholm School of Economics, 23rd of March.
  16. Belfrage, C., E. Bergman and D. M. Berry (2015). "A critique of neo-mercantilist analyses of Icelandic political economy and crisis." Capital&Class 39(3): 515-536
  17. Bénétrix, A. S., P. R. Lane and J. C. Shambaugh (2015). "International currency exposures, valuation effects and the global financial crisis." Journal of International Economics 96, Supplement 1: S98-S109.
  18. BIS (Bank for International Settlements) (2009). "Capital Flows and Emerging Markets." Committee on the Global Financial System (CGFS) Paper 33.
  19. BIS (Bank for International Settlements) (2013). "Market Volatility and Foreign Exchange Intervention in EMEs: What has changed? ." BIS Paper 73.
  20. BIS (Bank for International Settlements) (2013). "Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity ".
  21. Borio, C. E. and P. Disyatat (2011). "Global imbalances and the financial crisis: Link or no link?" BIS Working Paper 346.
  22. Bowles, P. and B. Wang (2013). "Renminbi Internationalization: A Journey to Where?" Development and Change 44(6): 1363-1385.
  23. Brunnermeier, M. K., S. Nagel and L. H. Pedersen (2008). "Carry Trade and Currency Crashes." NBER Macroeconomics Annual 23: 313-347.
  24. Bruno, V. and H. S. Shin (2015). "Global dollar credit and carry trades: a firm-level analysis." BIS Working Paper 51.
  25. Cafruny, A., and Ryner, M. (2007): Europe at Bay: In the Shadow of US Hegemony. Boulder: Lynne Rienner.
  26. Calvo, G., A. Izquierdo and L. F. Mejía (2004). "On the Empirics of Sudden Stops: The Relevance of Balance Sheet Effects." NBER Working Paper 10520.
  27. Calvo, G. and C. M. Reinhart (2000). "Fear of Floating." NBER Working Paper 7993.
  28. Chang, H.-J. (2003): Kicking away the ladder. Development strategy in historical perspective. London: Anthem Press.
  29. Chinn, M.; Frankel, J. (2005): Will the Euro eventually surpass the Dollar as leading international reserve currency? In: NBER Working Paper 11510, http: and and www.nber.org and papers and w11510.pdf
  30. Cohen, B. J. (1971). The Future of the Sterling as an International Currency. London, Macmillan.
  31. Cohen, B. J. and T. Benney (2014). "What does the International Currency System really look like? ." Review of International Political Economy 21 (5): 1017-1041.
  32. Dannreuther, C. and Petit, P. (2006): Post-Fordism, Beyond National Models: The Main Challenges for Regulation Theory. In: Competition & Change 10 (2), 100-112.
  33. De Conti, B. and Biancarelli, A. and Rossi, P. (2013): Currency hierarchy, liquidity preference and exchange rates: a Keynesian and minskyan approach. In: Paper presented at the Congrès de l'Association Française d'Économie Politique Université Montesquieu Bordeaux IV, France, 3-5 July 2013.
  34. Eichengreen, B. and P. Gupta (2013). "Tapering Talk: The Impact of Expectations of reduced Federal Reserve Security Purchases on Emerging Markets." VOX, Online Source: Available at: http://www.voxeu.org/article/fed-tapering-and-emerging-markets.
  35. Eichengreen, B., R. Hausmann and U. Panizza (2003). "Currency Mismatches, Debt Intolerance and Original Sin: Why They are not the Same and Why it Matters." NBER Working Paper 10036.
  36. Eichengreen, B., R. Hausmann and U. Panizza (2003). The Mystery of Original Sin. Debt Denomination and Financial Instability in Emerging Market Economies. B. Eichengreen and R. Hausmann. Chicago, University of Chicago Press.
  37. Epstein, G. A. (2005): Introduction: Financialization and the World Economy. In: Epstein, G. A. (ed.): Financialization and the World Economy. Cheltenham, Northampton: Edward Elgar, 3-16.
  38. Fritz, B., Prates, D. and de Paula, L. F. (2014): Keynes at the Periphery: Currency hierarchy and challanges for economic policy in emerging economies. In: desiguALdades.net Working Paper Series (forthcoming).
  39. Gao, H. and Yu, Yongding (2011): Internationalization of the renminbi. In: BIS Papers, 61, 105-124.
  40. Gopinath, G., O. Itskhoki and R. Rigobon (2010). "Currency choice and exchange rate pass- through." American economic review 100(1): 304-336.
  41. Gowan, Peter T. (1999): The Global Gamble. Washington´s Faustian Bid for World Dominance. London: Verso.
  42. Guttmann, R. (2008): A Primer on Finance-Led Capitalism and Its Crisis. In: Revue de la régulation: Capitalisme, Institutions, Pouvoirs, 3 and 4, 1-20.
  43. Guttmann, R. (2012): Finance Regulation: Why and How? In: Institut Veblen pour les réformes économiques, http: and and www.veblen-institute.org and IMG and pdf and reregulationguttmann.pdf
  44. Habermaier, K., Kokenyne, A. and Baba, C. (2011): The Effectiveness of Capital Controls and Prudential Policies in Managing Large Inflows. In: IMF Staff Discussion Note, SDN and 11 and 14, August 2011.
  45. Hassan, S. (2015). "Speculative Capital Flows, Exchange Rate Volatility and Monetary Policy: South African Experience". Contemporary Issues in Development Economics, 136.
  46. Harvey, J. (1991): A Post Keynesian View of Exchange Rate Determination. In: Journal of Post-Keynesian Economics, vol. 14, no. 1, 61-70.
  47. Harvey, J. (2001): Exchange Rate Theory and "the Fundamentals". In: Journal of Post Keynesian Economics, vol. 24, no. 1, 3-15.
  48. Harvey, J. (2009): Currencies, Capital Flows and Crises: A Post Keynesian Analysis of Exchange Rate Determination. London, Routledge.
  49. He, D., P. Luk and W. Zhang (2015). "The Internationalisation of the Renminbi as an Investing and a Funding Currency: Analytics and Prospects." Hong Kong Institute for Monetary Research Working Paper 1(2015).
  50. He, D. and R. McCauley (2010). "Offshore Markets for the Domestic Currency: Monetary and Financial Stability Issues." BIS Working Paper 320.
  51. Jessop, B. (1990): Regulation Theories in Retrospect and Prospect. Economy and Society 19 (2), 153-216
  52. Jessop, B. and Sum, N.-L. (2006). Beyond the Regulation Approach: Putting Capitalist Economies in their Place. Cheltenham.
  53. Kaltenbrunner, Annina (2011): Currency Internationalization and Exchange Rate Dynamics in Emerging Markets: A Post Keynesian Analysis of Brazil. PHD Dissertation, University of London.
  54. Kaltenbrunner, A. (2015). "Financial Integration and Exchange Rate Determination: a Brazilian Case Study." International Review of Applied Economics 29(2): 129-149.
  55. Kaltenbrunner, A. and J. P. Painceira (2012). "The Impossible Trinity on Steroids: Inflation Targeting and Exchange Rate Management in Emering Markets." AUGUR Working Paper Februrary 2012.
  56. Kaltenbrunner, A. and J. P. Painceira (2015). "Developing Countries' changing Nature of Financial Integration and New Forms of External Vulnerability: the Brazilian experience." Cambridge Journal of Economics 39(5): 1281-1306.
  57. Kenen, P. B. (1983): The Role of the Dollar as an International Currency. Group of Thirty Occasional Paper 13, New York, Group of Thirty.
  58. Kenen, P. B. (2009). "Currency Internationalization: An Overview." Paper presented at the Bank of Korea and BIS Seminar on Currency Internationalization: Lessons from the Global Financial Crisis and Prospects for the Future in Asia and the Pacific, March 19-20, 2009, Seoul, Korea.
  59. Kenen, Peter (2011): Currency internationalization: an overview. In: BIS Papers, 61, 9-18.
  60. Kohler, M. (2010). "Exchange Rates during Financial Crises." BIS quarterly Review March 2010.
  61. Lagendijk, A. (2007): The Accident of the Region: A Strategic Relational Perspective on the Construction of the Region's Significance. In: Regional Studies 41 (9), 1193-1207.
  62. Lane, P. and G. M. Milesi-Ferreti (1999). "The external Wealth of Nations: Measures of Foreign Assets and Liabilities for Industrial and Developing Countries." IMF Working Paper 99(15).
  63. Lane, P. and G. M. Milesi-Ferreti (2005). "Financial Globalization and Exchange Rates." IMF Working Paper 05/3.
  64. Lane, P. and G. M. Milesi-Ferreti (2006a). "Exchange Rates and External Adjustment: Does Financial Globalization Matter?" IIIS Discussion Paper 129.
  65. Lane, P. R. (2013). "International Capital Flows and Domestic Financial Conditions: Lessons for Emerging Asia." Institute for International Integration Studies 438(December 2013).
  66. Lane, P. R. and P. McQuade (2014). "Domestic Credit Growth and International Capital Flows." The Scandinavian Journal of Economics 116(1): 218-252.
  67. Lane, P. R. and G. M. Milesi-Ferretti (2002). "External Wealth, the Trade Balance, and the Real Exchange Rate." European Economic Review 46(6): 1049-1071.
  68. Lane, P. R. and J. C. Shambaugh (2010). "Financial Exchange Rates and International Currency Exposures." The American Economic Review 100(1): 518-540.
  69. Levy-Yeyati, E. and F. Sturzenegger (2007). "Fear of Appreciation." World Bank Policy Research Working Paper 4387.
  70. Ma, G. and A. Villar (2014). "Internationalisation of Emerging Market Currencies." BIS Paper(78d).
  71. McCauley, R. (2006). "Internationalising a Currency: the Case of the Australian Dollar." BIS Quarterly Review December 2006.
  72. McCauley, R. and P. McGuire (2009). "Dollar Appreciation in 2008: Save Haven, Dollar Shortage and Overhedging." BIS Quarterly Review December 2006.
  73. McCauley, R. and J. Zukunft (2008). "Asian Banks and the International Interbank Market." BIS Quarterly Review June 2008.
  74. McKinnon, R. and G. Schnabl (2004). "The East Asian Dollar Standard, Fear of Floating and Original Sin." Review of Development Economics 8(3): 331-360.
  75. Milberg, W. (2008): Shifting Sources and Uses of Profits: Sustaining Us Financialization with Global Value Chains. In: Economy and Society, 37, 420-451.
  76. Obstfeld, M. (2012). "Financial Flows, Financial Crises, and Global Imbalances." Journal of International Money and Finance 31(3): 469-480.
  77. Painceira, J. P. (2012). "Financialisation, Reserve Accumulation, and Central Banking in Emerging Economies: Banks in Brazil and Korea." Research on Money and Finance Discussion Papers 38(Online Source): Available at: http://www.researchonmoneyandfinance.org/index.php/publication/discussion-papers.
  78. Prachi, M., K. Moriyama, P. N'Diaye and L. Nguyen (2014). "Impact of Fed Tapering Announcements on Emerging Markets " IMF Working Paper 109.
  79. Radelet, S., J. D. Sachs, R. N. Cooper and B. Bosworth (1998). "The East Asian Financial Crisis: Diagnosis, Remedies and Prospects." Brookings Papers on Economic Activity 1998(1): 1-90.
  80. Rey, H. (2015). "Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence." NBER Working Paper 21162(May 2015).
  81. Rhee, C. and L. Sumulong (2013). "A practical Approach to international Monetary System Reform: Building Settlement Infrastructure for regional Currencies." Asian Development Bank Economics Working Paper Series(4).
  82. Rime, D. and A. Schrimpf (2013). "The anatomy of the global FX market through the lens of the 2013 Triennial Survey." BIS Quarterly Review December 2013.
  83. Schmalz, S. (2013): Neue Vögel im Käfig? Chinas steiniger Weg zu einem neuen Akkumulationsregime. In: Atzmüller, R., Becker, J. Brand, U., Oberndorfer, L., Redak, V. and Sablowski, T. (2013): Fit für die Krise? Perspektiven der Regulationstheorie. Münster: Westfälisches Dampfboot, 239-352.
  84. Schmalz, S. and Ebenau, M. (2011): Auf dem Sprung -Brasilien, Indien und China. Berlin: Dietz Verlag.
  85. Schulmeister, S. (1988): Currency speculation and dollar fluctuations. In: Banca Nazionale Del Lavoro, Quarterly Review, 167, 343-366.
  86. Stiglitz, J. E. (2002): Globalization and its discontents. New York: W.W. Norton & Company.
  87. Sui, Lu, and Lijuan Sun. "Spillover effects between exchange rates and stock prices: Evidence from BRICS around the recent global financial crisis." Research in International Business and Finance 36 (2016): 459-471.
  88. Stockhammer, E. (2013): Rising Inequality as a cause of the present crisis. In: Cambridge Journal of Economics, http: and and cje.oxfordjournals.org and content and early and 2013 and 11 and 25 and cje.bet052.abstract [DOI: 10.1093 and cje and bet052].
  89. van den Heever, J. (2013): Challenges of the International Monetary System and Response Options: A South African Perspective. In: The BRICS and Asia, Currency Internationalization and International Monetary Reform Paper Series, No. 7, by ADB, HKIMR and CIGI.
  90. Wolfson, M. (2002): Minsky's Theory of Financial Crisis in the Global Context. In: Journal of Economic Issues, XXXVI (2), 393-400.
  91. Xu, Q. and He, F. (2015): The influence of RMB internationalization on the Chinese economy. Theory and policy. In: CIGI Papers, No. 58, February 2015.
  92. Zhang, L. and Tao, K. (2014): The Benefits and Costs of Renminbi Internationalization. In: ADBI Working Paper Series, No. 481.
  93. Part II Aglietta, M., Khanniche, S. and Rigot, S. (2010) Les Hedges Funds: Entrepreneurs ou Requins de la Finance?. Perrin: Paris Andina (2012). Brazil in talks with Peru, Colombia to enter MILA. Url. http://www.andina.com.pe/ingles/noticia-brazil-in-talks-with-peru-colombia-to-enter- mila-408249.aspx
  94. Belfrage, C. (2013). Challenges for strengthening Mercosul financial integration -lessons from the European experience. Banco Central do Brasil.
  95. Canuto, O. (2015). De-Risking Is De-linking Small States from Global Finance. The World Post. Url. http://www.huffingtonpost.com/otaviano-canuto/de-risking-is-de- linking_b_8357342.html Financial Times (2014). Pacific Alliance impels Mexico south. April 1st.
  96. Helleiner, E. (1994). States and the Reemergence of Global Finance: From Bretton Woods to Global Finance, Cornell University Press
  97. Hermann, J.; Montani Martins, N. (2012). "The Brazilian Stock Market: Risk Analysis of the 2004-11's Upsurge". Análise Econômica no. 58: 87-120. UFRGS: Porto Alegre.
  98. Jímenez, L. F.; Manuelito, S. (2011). "Latin America: financial systems and financing of investment. Diagnostics and proposals". CEPAL Review no. 103. CEPAL, UN: Santiago, Chile.
  99. Kose, M., Prasad, E. and Terrones, M. (2003) Financial Integration and Macroeconomic Volatility. IMF Staff Papers Vol.50, Special Issue. International Monetary Fund Lane and Milesi-Ferretti, (2003). "International Financial Integration". IMF Staff Papers. Vol 50, Url: https://www.imf.org/External/Pubs/FT/staffp/2002/00-00/pdf/lane.pdf
  100. McKinnon, R. (1993). The Rules of the Game: International Money in Historical Perspective. Journal of Economic Literature, Vol. 31, No. 1. (Mar., 1993), pp. 1-44.
  101. Stable. Url. http://links.jstor.org/sici?sici=0022- 0515%28199303%2931%3A1%3C1%3ATROTGI%3E2.0.CO%3B2-K Murphy, H. (2011) Brazil, Mexico Want to Join MILA, Colombia's Santos Says. BloomberBusiness. August 12. Url. http://www.bloomberg.com/news/articles/2011-08- 12/brazil-mexico-want-to-join-mila-colombia-s-santos-says Prebisch, R. (1981). "The Latin America periphery in the global system of capitalism". CEPAL Review no. 13. CEPAL, UN: Santiago, Chile. Ríos, Guillermo Larraín (2015). Integración Financiera en América Latina: Realidades, Desafíos y Propuestas Estratégicas. Brain , Mimeo.
  102. Superintendencia de Pensiones de Chile (2012). Régimen de Inversión de los Fondos de Pensiones Url. https://www.spensiones.cl/portal/regulacion/582/articles- 8473_recurso_1.pdf.
  103. Torres Filho, E.; Macahyba, L. (2015). "Long Term Corporate Financing in Brazil: Is Brazil Becoming 'Normal'?". MINDS Discussion Papers no. 02. Multidisciplinary Institute for Development and Strategies (MINDS): Rio de Janeiro.
  104. Torres, E. (2014). A Crise do Sistema Financeiro Globalizado Contemporâneo. Revista de Economia Política, vol. 34, nº 3 (136), pp. 433-450.
  105. Url. www.scielo.br/pdf/rep/v34n3/v34n3a05.pdf
  106. Vera, C.; Titelman, D. (2013). "El sistema financiero en América Latina y el Caribe: Una caracterización". Serie Financiamiento para el Desarrollo no. 248. CEPAL, UN: Santiago, Chile. World Bank (2012). Financial Development in Latin America and the Caribbean: The Road Ahead. The World Bank: Washington DC.