Debt, seigniorage and inflation in a Brazilian economy
Abstract
New industrialized countries presented some similarities in its inflation dynamics,
particularly with strong monopolization and wage policy. Another feature is the manipulation
of the exchange rate to attend specific targets, not considering the dangers of inflation.
This paper aims to understand this process, especially how local currencies started to loss
their role as reserve of value, the dollarization present in such economies and how foreign
debt is an issue.
JEL Classification: E31; E51.
Keywords: Inflation seigniorage public debt