TD n. 606 2013
Marcos Chamon, Márcio Gomes Pinto Garcia.
http://dx.doi.org/10.1016/j.jimonfin.2015.08.008
We analyze the impact of the controls and restrictions on capital inflows that Brazil has adopted
since late 2009. We document that these measures had some success in segmenting the Brazilian
and global financial markets, as measured by wedges between onshore and offshore prices of
similar fixed and variable income assets. However, that failed to translate into significant
changes in the exchange rate, at least in the immediate aftermath of these measures, suggesting
limited success in mitigating real appreciation. But capital controls/restrictions may have
contributed to the sizable depreciation of the real in 2012, possibly amplifying the effect on the
exchange rate of cuts in the interest policy rate during that period. (revisto em 8/2014)