Year: 2024
Type: article
Abstract: This paper argues that the Brazilian economy has been quasi-stagnant since the 1980s. In this decade, income per capita stagnated due to the foreign debt crisis and high inflation. From 1990 on, the country resumed growth but at a considerably lower level, with a rate inferior to the rich countries, configurating quasi-stagnation. The new historical facts that explain this were the public savings that turned negative, and two causes associated with the exchange rate: the belief in the policy of growth with foreign savings and the non-neutralization of the Dutch disease by engaging in trade liberalization. Those three facts depressed the investment rate. The paper ends with a few policy recommendations.
Author: Luiz Carlos Bresser-Pereira
Institution: Fundação Getulio Vargas
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405814243