The Encilhamento was an economic bubble that boomed in the late 1880s and early 1890s in Brazil, bursting during the early years of the First Brazilian Republic (1889–1894) and leading to an institutional and a financial crisis.[1][2] Two Finance Ministers, first the Viscount of Ouro Preto and then Ruy Barbosa, adopted a policy of unrestricted credit for industrial investments, backed by an abundant issuance of money,[3][4] in order to encourage Brazil's industrialization. This policy of economic incentives created unbridled speculation and increased inflation, and encouraged fraudulent initial public offerings (IPOs) and takeovers.[5][6]
- ^ Amy Chazkel; "Laws of Chance: Brazil's Clandestine Lottery and the Making of Urban Public Life" Duke University Press 2008 pp.146
- ^ Assis, Oxford Edition 2000. Foreword pp. xv
- ^ Ney O. Carvalho ;"Encilhamento: Anatomia de uma bolha brasileira" ("Encilhamento: Anatomy of a Brazilian Bubble") (in Portuguese) Bovespa 2004
- ^ Chazkel, 2008 Chapter 4
- ^ Jeffrey D. Needell; "A Tropical Belle Epoque: Elite Culture and Society in Turn-of-the-Century" Cambridge University Press 1987 Page 12
- ^ Jose Murilo de Carvalho, "Os Bestializados, o Rio de Janeiro e a República que não foi" ("Brutalized ones, Rio and the Republic that didn't came") (in Portuguese) Cia das Letras 1987 ISBN 978-85-85095-13-0 P.20