Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63243
Authors: 
Bittencourt, Manoel
Year of Publication: 
2008
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2008/14
Abstract: 
We examine the impact of inflation on financial development in Brazil and the data available permit us to cover the period between 1985 and 2002. The results – based initially on time-series and then on panel time-series data and analysis, and robust for different estimators and financial development measures – suggest that inflation presented deleterious effects on financial development at the time. The main implication of the results is that poor macroeconomic performance has detrimental effects to financial development, a variable that is important for affecting, for example, economic growth and income inequality. Therefore, low and stable inflation, and all that it encompasses, is a necessary first step to achieve a deeper and more active financial sector with all its attached benefits.
Subjects: 
financial development
inflation
Brazil
JEL: 
E31
E44
O11
O54
ISBN: 
978-92-9230-056-2
Document Type: 
Working Paper

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