Inflation and financial development: Evidence from Brazil

Arbeitspapier

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.

Object Details

• ISBN: 978-92-9230-056-2
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Research Paper ; No. 2008/14

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Financial Markets and the Macroeconomy ; Macroeconomic Analyses of Economic Development ; Economywide Country Studies: Latin America; Caribbean
• Subject: financial development ; inflation ; Brazil ; Inflation ; Finanzsektor ; Entwicklung ; Brasilien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bittencourt, Manoel
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/63243
• Last update: 10.03.2025, 11:44 AM CET