The IMF and the Brazilian Crisis

Abstract

In 1998-1999 Brazil suffered from a financial crisis. Its currency, the Real, collapsed in 1999. The International Monetary Fund came to the rescue. It is not universally accepted that the International Monetary Fund, henceforth referred to as IMF, always has the compatible answer to a crisis, and is the perfect manager of the world’s financial economy. A lot of criticism of the institution has been and is being expressed. In this thesis I shall discuss whether the criticism can also be applied to the IMF’s handling of the financial crisis Brazil suffered in 1999. I shall try to answer the question whether the IMF had the answer to the Brazilian crisis in 1999