Abstract
This paper examines the impact of globalized financial markets on domestic economic policymaking and, ultimately, on economic sovereignty. It argues that the development of dollar-denominated Brady bonds, eurobonds, and global bonds issued by Latin sovereigns opened a new venue for foreign capital to participate in economic affairs of these countries. A natural outcome of the globalization of Brazil’s financial markets has been the increased vulnerability of the Brazilian economy to contagion from financial crises in other troubled markets of the globe. This paper focuses on how the contagion channel compromised domestic economic policymaking and affected the real sector of the Brazilian economy. It offers the first analytical attempt at estimating the real cost of contagion by investigating the impact of the Russian and the Argentine crises on Brazil’s output and production.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
