New Consensus Macroeconomics, economic stagnation and an economic agenda: The Brazilian case
DOI:
https://doi.org/10.7203/IREP.6.1.29164Abstract
Since the implementation of the New Consensus Macroeconomics (NCM) theoretical framework in Brazil, in 1999 and 2000, fiscal policy has been operationalized, mainly, according to a fiscal target in terms of a primary budget surplus to aim at stabilizing the debt-to-GDP ratio, the interest rate seems to have only one economic objective, that is, to bring the inflation rate to its target or to its tolerance intervals, and the exchange rate has been characterized by a regime of exchange rate flexibility, but managed by the Central Bank of Brazil. Despite the expected objectives, the aforementioned economic policies, in the period 1999-2022, failed to reduce the public debt – on the contrary, the relation between public debt and GDP grew significantly –, to keep inflation under control at levels suitable for countries that adopt an Inflation Targeting Regime and the exchange rate was volatile and appreciated for most of the period. Furthermore, with regard to economic activity, during this period, the GDP performance was poor, with the industrial sector being the productive segment that lost the most relative share in the composition of Brazilian GDP. Given that, the objective of the article is to show how much the NCM’s economic policies were not only responsible for a dynamic of economic stagnation and growth à la stop-and-go of the Brazilian economy between 1999 and 2022, but also contributed for the country’s de-industrialization process. Moreover, it presents an Economic Agenda to overcome the economic stagnation.
Downloads
References
Arestis, P.; Ferrari Filho, F.; Resende, M.F.C.; Terra, F.H.B. (2019). “Brazilian monetary and fiscal policies from 2011 to 2017: Conventions and crisis”. Challenge, 62(3): 187-199.
Carlin, W.; Soskice, D. (2006). Macroeconomics: Imperfections, Institutions and Policies. Oxford: Oxford University Press.
Commons, J.R. (1931). “Institutional Economics”. American Economic Review, 21: 648-657.
Ferrari Filho, F.; Milan, M. (2018). “Liquidity trap: The Brazilian version”. Brazilian Keynesian Review, 4(2): 278-299, Second Semester.
Ferrari Filho, F.; Terra, F.H.B. (2023). “The Brazilian ‘secular stagnation’: Its causes and an agenda to overcome it”. Brazilian Journal of Political Economy, 43 (1), January-March: 96-109.
Hogdson, G.M. (2002). “The evolution of institutions: An agenda for the future theoretical research”. Constitutional Political Economy, 13: 111-127.
IBGE (2024). PNAD Contínua. Available at:https://www.ibge.gov.br/busca.html?searchword=taxa+de+desemprego, accessed on March 6, 2024.
International Monetary Fund (2020). World Economic Outlook June 2020. Available at: http://www.imf.org, acessed on March 6, 2024.
IPEADATA (2024). Séries Históricas. Available at: http://www.ipeadata.gov.br, acessed on March 6, 2024.
Keynes, J.M. (1936/1964). The General Theory of Employment, Interest and Money, Nova York: HBS.
Keynes, J.M. (1980). Activities 1940-1946: Shaping the Post-War world – employment and commodities/The Collected Writings of John Maynard Keynes, Volume XXVII. London: Palgrave Macmillan.
Veblen, T. ([1889] 1973). The Theory of the Leisure Class: An economic study of Institutions. Boston: Houghton Mifflin.
Downloads
Published
How to Cite
-
Abstract104
-
PDF42
Issue
Section
License
Copyright is the right exercised by the creator over his/her literary and artistic work. The owner of the copyright is, as a rule, the person who creates the work, which is to say the author. In Copyright Law, the author is considered to be “the natural person who creates a literary, artistic or scientific piece of work”. Although in principle it is only natural or physical persons who may be considered to be authors, the law foresaw certain cases in which legal persons could also benefit from these rights.
Authorship is irrevocable; it may not be transmitted either inter vivos or in the form of a testamentary trust; it does not disappear with the passage of time nor is it public domain; it is not subject to the statute of limitations.
Copyright Law has a dual nature; it covers moral rights (paternity, integrity, dissemination…), and property rights (reproduction, distribution, public communication, transformation):
Moral rights (article 14 of the Spanish Copyright Law). These refer to acknowledgement of authorship. They are irrevocable and inalienable and correspond to the right to:
- Decide whether his/her work is to be disseminated and how.
- Acknowledge authorship of the work.
- Demand respect for the integrity of the work.
- Modify the work while being respectful of the rights acquired.
- Withdraw the work from sale, without prejudice to compensation for damages to the owners of the right of use.
- Access the single,unique copy of the work that is held by a third party
Property rights (articles 18 to 25 of the Spanish Copyright Law). They refer to the four types of right of use. They allow the owner of the work to obtain financial compensation for the third-party use of his/her work:
- Reproduction: obtaining of copies of all or part of the work.
- Distribution: the public availability of the work through its sale, rental, loan or by any other means.
- Public Communication: action through which a group of people may have access to the work.
- Transformation: the translation, adaptation and any other modification of the work, leading, or not, to new work derived from it.