Late Globalization and Maladjustment: The Brazilian reforms in retrospective Matias Vernengo

This paper discusses the effects of the Brazilian economic reforms since the debt crisis of the early 1980s. It shows that none of the expectations of higher growth performance attributed to trade and capital account liberalisation by the Washington Consensus were fulfilled in Brazil during the 1990s. The paper highlights the policy alternative of a relatively more closed financial regime which offers the ability to control interest rates for domestic purposes, and which may then lead to an increase in effective demand and higher rates of growth and employment.

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