Brazilian Experience (Sobreira)

The Brazilian experience on prudential regulation and its impacts on the 2008 financial crisis by Rogério Sobreira indicated by Arthur Garbayo. “The Brazilian economy was severely hit by the 2008 crisis. In the beginning of the crisis, the vast majorities of the economic agents and authorities thought that Brazil could face some sort of decoupling since some macroeconomic fundamentals were very good. What we saw, however, was that the Brazilian economy was not decoupled, and expectations faced a huge deterioration soon after the bankruptcy of Lehman Brothers in September 15th.”