Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27455
Authors: 
Bittencourt, Manoel
Year of Publication: 
2007
Series/Report no.: 
Discussion papers // Ibero America Institute for Economic Research 165
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, exemplified in Brazil by high rates of inflation, have detrimental effects to financial development, a variable that is important for affecting, e.g. 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.
JEL: 
E31
E44
O11
O54
Document Type: 
Working Paper

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