Janot, Marcio Magalhães; Garcia, Márcio Gomes Pinto; … - In: Economia : revista da ANPEC 20 (2019) 3, pp. 139-152
Since the mid 1990s, theories of speculative attacks have argued that fixed exchange rate regimes induce excessive borrowing in foreign currency as an optimal response to implicit guarantees that the government will not devalue the domestic currency. Using data on Brazilian firms before and...