The Reforms of 1964–5
- 7 Downloads
The financial reforms initiated in 1964 had three basic objectives: (1) improve allocative efficiency of capital markets, (2) design an institutional structure which would allow the implementation of selective credit policy, and (3) establish institutions that would facilitate inflation stabilisation. In many instances, these objectives were not mutually compatible. For example, creating strong primary and secondary markets for equities is difficult in the face of restrictive monetary policy. Further, selective credit programmes made, at times, anti-inflationary monetary programming difficult, if not politically impossible. In other cases, the initial measures did not achieve the original objectives and stronger measures were implemented. This chapter outlines the initial objectives of the reformers, the initial reforms, and the resulting structure of the financial system.
KeywordsPrivate Sector Capital Market Financial System Commercial Bank Monetary Authority
Unable to display preview. Download preview PDF.
- 1.Donald Syvrud (1974): Foundations of Brazilian Economic Growth (Washington, D.C.: American Enterprise Institute), p. 232.Google Scholar
- 10.Antonio Carlos F. Pinto (1985): Os Investidores Institucionais no Brasil (Rio de Janeiro: IBMEC), p. 6.Google Scholar
- 16.Mario H. Simonsen (1965): 0 Mercado Brasileiro de Capitais (Rio de Janeiro: EPEA), p. 82.Google Scholar
- 19.Werner Baer (1983): The Brazilian Economy: Growth and Development (New York: Praeger).Google Scholar