The international monetary hierarchy and the financialization of peripheral countries: an interpretation on Brazil
Keywords:
Financialization, Globalization, Emerging Countries, Dollar,Abstract
The present paper begins by analyzing the literature on the phenomenon of financialization in emerging countries. It is hypothesized that the global dependence of the US dollar generates a global cycle of liquidity that creates a series of “impulses” to financialization in emerging countries. In interaction with domestic actors and institutions, these impulses are amplified and not only leave emerging countries more vulnerable to changes in capital flows, but also shape the credit markets and the way in which non-financial corporations are indebted. In this sense, the case of Brazil is analyzed in order to exemplify such dynamics. It is argued that ‘financialization’ in peripheral countries is a qualitatively diverse phenomenon because of the position of these countries in the international financial and monetary hierarchy.
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