A crise brasileira de 1998-1999: análise sob a ótica do modelo de Krugman

Abstract

The paper analyzes the determinants of currency crisis of 1998/1999. It suggests that the Brazilian crisis was a typical case of first generation models that are inspired by the canonical model of Krugman. Some points about other crisis of that time were studied to support this argument. This work also maintains that the effects of the crisis were minimized by a process of "socialization of losses" of the private sector. In this process, the role of the Central Bank actions in the bonds and derivatives markets (transactions with foreign currency derivatives and bonds) were decisive for overcome the crisis.