Research Library

Since early 2014, Brazil has been in the midst of a political and economic crisis characterized by the impeachment of former President Dilma Rousseff, steadily worsening economic conditions, and an investigation into widespread corruption within the government and Petrobras, the state-owned oil company. Experts from the Latin America Initiative analyze different aspects of the current situation in the issue briefs listed below.

Since the first quarter of 2014, Brazil has been living in crisis mode as the result of a severe economic crisis in conjunction with an investigation into widespread corruption that has penetrated the highest offices in the government. Although the impeachment of Dilma Rousseff in 2016 did offer some hope for recovery, recent events demonstrate that Brazil's troubles are still ongoing. Contributing expert Sergio Fausto analyzes the main factors leading to this crisis and surveys the current economic and political situation.

The winner’s curse — overestimating the value of an asset and therefore overpaying — is often associated with acquisitions of publicly-traded firms but not with private acquisitions. Using an event study methodology for over 22,000 private acquisitions of U.S. firms between 1985 and 2015, the authors examine a possible winner’s curse for such acquisitions, testing variables to determine what characteristics make a private company more likely to overestimate the asset's value.

Shifts in U.S. economic policy toward China could provide leverage on other issues and, at the beginning of a new administration, usefully set a tone of cooperation.

Repealing Obamacare and replacing it with market-based coverage that is both compassionate and prudent will make health care affordable again, which will guarantee access to insurance coverage for all Americans.

With growing competition from abroad, the U.S. must reform its fiscal policy to reduce debt, maximize economic efficiency — including minimizing the distortions caused by the tax system — and maintain its areas of competitive advantage.

The federal government will need a nuanced approach to properly stimulate small business growth. However, a core focus should be on creating a level playing field for community banks to compete to provide small business loans.

This paper examines the cash flow and financial issues affecting Venezuela’s PDVSA, as well as the operational challenges facing the country’s oil industry.

This brief gauges the impact of India's drastic, surprise move to eliminate "black money" by requiring holders to redeem certain rupee notes by the end of the year. If not redeemed, such notes will become illegal tender.

Venezuela's fragile democracy is crumbling under President Nicolás Maduro. Latin America Initiative program director Erika de la Garza analyzes the country's political and economic crises in the Baker Institute Blog: http://bit.ly/2ekRNFH