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• Case | HBS Case Collection | 2013 (Revised from original 2012 version)

  Brazil's Enigma: Sustaining Long-Term Growth

  Laura Alfaro and Hilary White

  Over the past decade, Brazil's future as a leading world economic power appeared certain. An expanding middle class and commodity boom had fueled economic growth, with GDP growth hitting a peak of 7.5% in 2010. However, the high cost of conducting business in Brazil, known as "Custo Brasil," was hurting domestic manufacturing, while incoming foreign investments threatened to overwhelm Brazilian markets. Under President Dilma Rousseff, economic growth stagnated, and the Rousseff administration struggled to find the best balance between reducing inflation, maintaining a flexible exchange rate, and improving the competitiveness of Brazilian exports.

  Keywords: capital controls; inflation; Exchange rates; stimulus; competitiveness; productivity growth; foreign investment; infrastructure; Inflation and Deflation; Currency Exchange Rate; Brazil;

  Citation:

  Alfaro, Laura, and Hilary White. "Brazil's Enigma: Sustaining Long-Term Growth." Harvard Business School Case 713-040, April 2013. (Revised from original October 2012 version.)

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• Guest Column | Nación (Costa Rica) | April 7, 2013

  Infraestructura en América Latina [Infrastructure in Latin America: A perspective from the HBS Latin America Conference]

  Laura Alfaro

  Citation:

  Alfaro, Laura. "Infraestructura en América Latina [Infrastructure in Latin America: A perspective from the HBS Latin America Conference]." Nación (Costa Rica) (April 7, 2013).

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• Case | HBS Case Collection | 2013

  Currency Wars

  Laura Alfaro and Hilary White

  In February 2013, the G-20 finance ministers met in Moscow, Russia to discuss the rising anxieties over a potential international currency war. It was speculated that certain countries were purposely devaluing their currencies in order to improve their competitiveness in global markets. Emerging markets contended that the expansionary monetary policies of the major central banks, such as the US Federal Reserve, European Central Bank, and the Bank of England, were causing significant and detrimental spillover effects, such as currency appreciation, declining exports, and rising inflation, in less developed economies. Conversely, the major central banks insisted that such policies were necessary for reviving economic growth both domestically and internationally. Would these policies successfully create a resurgence of growth? Can expansionary monetary policies be considered "beggar-thy-neighbor" actions by emerging markets? How should developing nations respond?

  Keywords: currency; competitiveness; Trade policy; Devaluation; exchange rate; monetary policy; quantitative easing; inflation targeting; capital flows; Central Banking; Currency Exchange Rate; Competitive Strategy; Emerging Markets; Policy; Trade; Conflict and Resolution; Banking Industry; Public Administration Industry; Moscow;

  Citation:

  Alfaro, Laura, and Hilary White. "Currency Wars." Harvard Business School Case 713-074, March 2013.

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