What is "encilhamento"

The Encilhamento was an economic bubble that boomed in the late 1880s and early 1890s in Brazil, bursting during the provisional government of Deodoro da Fonseca (1889–1891) leading to financial crisis. Two Finance Ministers, first, the Viscount of Ouro Preto and then Rui Barbosa, adopted a policy of unrestricted credit for industrial investments, backed by an abundant issuance of money in order to encourage Brazil's industrialization. This policy of economic incentives created unbridled speculation, increased inflation, and encouraged fraudulent initial public offerings (IPOs) and takeovers.