- The Oxford Handbook of the Brazilian Economy
- The Colonial Economy
- The Nineteenth and Early Twentieth Centuries
- Brazilian Structuralism
- Brazil’s Import-Substitution Industrialization
- Experiences of Inflation and Stabilization, 1960–1990
- Leviathan Captured Neoliberalism as Solution and Problem in Brazil
- Growth Volatility and Economic Growth in Brazil
- The Brazilian Development Bank
- The Evolution of Brazil’s Banking System
- Brazil’s Macroeconomic Policy Institutions, Quasi-Stagnation, and the Interest Rate–Exchange Rate Trap
- Evolution and Sectoral Competitiveness of the Brazilian Manufacturing Industry
- The Agricultural Sector
- Traditional Agriculture and Land Distribution in Brazil
- Brazil’s Agricultural Modernization and Embrapa
- Manufacturing, Services, and the Productivity Gap
- Energy in Brazil: Past and Future
- Trade Policy from the 1930s to the Present
- Regional Disparities
- Brazil’s Northeast
- Changes in Income Distribution in Brazil
- The Development of Brazilian Education: A Tale of Lost Opportunities?
- Anti-Poverty Transfers and Poverty Reduction
- South-South Cooperation for Social Development: Brazil and Africa Examined
- Labor Market Development in Brazil: Formalization at Last?
- Environmental Issues
- The Economics of Health in Brazil
- Brazil, the BRICS, and the Changing Landscape of Global Economic Governance
- Brazilian Trade and International Economic Prospects in an Anti-Globalization Era
- The Evolution of Foreign Direct Investment in Brazil
- Multinational Corporations from Brazil
- The Rise and Fall of State Enterprises
- Antitrust and Competition Policy in Brazil
- Corruption Scandals, the Evolution of Anti-Corruption Institutions, and Their Impact on Brazil’s Economy
Abstract and Keywords
This chapter examines the evolution of macroeconomic policy and institutions over the long term and the ways in which they have influenced the growth path of the Brazilian economy. It establishes that a critical influence on the disappointing growth performance realized was a failure to neutralize the effects of exchange rate induced Dutch Disease. In addition to this, Brazil’s economic dynamism has been inhibited by the pursuit of a growth with current account deficits (“foreign savings”) policy; an exchange rate anchor policy to control inflation; and a high level of interest rates. Collectively, these factors have reduced the productivity and competitiveness of Brazil’s manufacturing industry. In addition, the interest-rate level has remained very high since the Real Plan and, from the late 1970s the investment capacity of the Brazilian state drastically decreased.
Luiz Carlos Bresser-Perreira, former Brazilian Minister of Finance and Professor of Economics, Fundação Getúlio Vargas–São Paulo
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