Describe the effects of the economic crisis started in 2008 in Brazil. In your presentation you should answer the 5 questions using 1100 words. Also, describe graphically the trend of macroeconomic indicators: GDP, inflation and unemployment
Describe the effects of the economic crisis started in 2008 in Brazil
Describe the effects of the economic crisis started in 2008 in Brazil.
In your presentation you should answer the 5 questions using 1100 words.
Firstly, Describe graphically the trend of macroeconomic indicators: GDP, inflation and unemployment.
Secondly, Calculate the growth rates of these indicators
Thirdly, Explain the observed trends and relate it to contextual factors.
Fourthly, Use the circular flow model to relate the different indicators.
Furthermore, Present a hypothesis of government intervention to face the economic downturn and use the circular flow model to forecast the effects of such a policy on the markets and agents involved and on the different macroeconomic indicators.
The 2008 financial crisis hit the Brazilian economy by two financial channels – capital flight from stock market and (some) reduction in the domestic supply of credit caused by the international credit crunch to the Brazilian big commercial and investment banks, with effects on the supply of interbank credit to the…
This article discusses the impacts of the international crisis on the Brazilian economy. It emphasis on the virtual paralysis of the domestic banking credit market that has occurred since September 2008. It argues that the dynamics of banking competition led to the emergence of high-risk practices. The destabilizing potential of these practices came to light when the aggravation of the international financial crisis and its contagion in peripheral countries such as Brazil caused a reversal of expectations. Generalized conservative behavior by banks during the retraction phase was exacerbated in Brazil by the relatively short credit cycle and by the liquidity, profitability and low risk of public bonds, allowing a rapid recomposition of portfolios. The Central Bank, sticking to its mandate as the guardian of price stability, failed to move to mitigate the deceleration of productive activities that resulted from the contraction of credit.