Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • March 2001 (Revised February 2004)
  • Case
  • HBS Case Collection

Power to the States: "Fiscal Wars" for FDI in Brazil

By: Laura Alfaro, Yasheng Huang and Marios S. Kalochoritis
  • Format:Print
  • | Pages:23
ShareBar

Abstract

On January 6, 1999, Itamar Franco, the governor of the state of Minas Gerais, the second-largest state in Brazil, declared a 90-day moratorium on its debt payment to the federal government. The announcement triggered a run on the Brazilian currency, the Real, and threatened the macroeconomic stability carefully constructed by President Fernando Henrique Cardoso since 1993. Confidence in the country on the part of foreign investors was badly shaken. This case traces the origin of this crisis.

Keywords

International Relations; Investment; Financial Crisis; Borrowing and Debt; Brazil

Citation

Alfaro, Laura, Yasheng Huang, and Marios S. Kalochoritis. Power to the States: "Fiscal Wars" for FDI in Brazil. Harvard Business School Case 701-079, March 2001. (Revised February 2004.)
  • Educators
  • Purchase

About The Author

Laura Alfaro

General Management
→More Publications

More from the Authors

    • February 2023
    • Faculty Research

    Doing Business in Boston, Massachusetts

    By: Laura Alfaro, Leonard A. Schlesinger and Zeke Gillman
    • September 2022
    • Management Science

    Health Externalities and Policy: The Role of Social Preferences

    By: Laura Alfaro, Ester Faia, Nora Lamersdorf and Farzad Saidi
    • July 2022
    • Faculty Research

    FIELD Immersion 2022: Lawrence, Massachusetts

    By: Laura Alfaro and Tom Quinn
More from the Authors
  • Doing Business in Boston, Massachusetts By: Laura Alfaro, Leonard A. Schlesinger and Zeke Gillman
  • Health Externalities and Policy: The Role of Social Preferences By: Laura Alfaro, Ester Faia, Nora Lamersdorf and Farzad Saidi
  • FIELD Immersion 2022: Lawrence, Massachusetts By: Laura Alfaro and Tom Quinn
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College