Thesis (Ph. D.)--University of California, Berkeley, 1991. / Includes bibliographical references (leaves 410-429).

Brazil instituted a crawling peg (mini-devaluation) exchange rate system in 1968 as a long-term device to put into operation an "export oriented growth-cum-debt" model of economic development. The crawling peg was expected to serve diverse objectives by decreasing the variability in the exchange rate. In this study we have analyzed the degree to which this strategy succeeded in realizing the desired goals during the period from 1968 to 1980. / Our findings verified that the implementation of the crawl was an important tool that protected and enhanced Brazil's competitive position in world markets. The demand for Brazilian products became more responsive both to changes in relative prices and to changes in world income. We further established the significance of the crawl in stabilizing import prices and flows in addition to its impact on foreign financing decisions.

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