Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change?
We analyzed Brazil’s development since World War II and especially Presidents Lula and Rousseff’s economic policy by integrating historical and political economy approaches using the concept of “development convention”. Two development conventions have been struggling for hegemony: a pro-growth – st...
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| Format: | Article |
| Language: | English |
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Association Recherche & Régulation
2015-06-01
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| Series: | Revue de la Régulation |
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| Online Access: | https://journals.openedition.org/regulation/11322 |
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| author | Rui Lyrio Modenesi André de Melo Modenesi Norberto Montani Martins Patrick Fontaine |
| author_facet | Rui Lyrio Modenesi André de Melo Modenesi Norberto Montani Martins Patrick Fontaine |
| author_sort | Rui Lyrio Modenesi |
| collection | DOAJ |
| description | We analyzed Brazil’s development since World War II and especially Presidents Lula and Rousseff’s economic policy by integrating historical and political economy approaches using the concept of “development convention”. Two development conventions have been struggling for hegemony: a pro-growth – state led and a pro-stability – free market convention. Until the 1970s, the “developmentalist” convention was dominant. During the 1980s, a stability convention started to ascend; the rise of neoliberalism reinforced the precedence of stability over growth. In 1999, the macroeconomic tripod – inflation targeting; floating exchange rate; and budget surplus targeting – aligned with the New Consensus on Macroeconomics was adopted. As we argued, it locked economy into a trap: low growth; high interest rates; relatively high inflation; and overvalued currency. Since the 2008 Great Crisis, economic policy has been changing in an attempt to foster growth. For orthodox economists, the tripod was marred or dropped and replaced by a Keynesian policy. For Keynesians, it was hold; it is as if the change had just been a Gattopardo change, a “change that keeps things the same”. |
| format | Article |
| id | doaj-art-0d0818dd81ea42988b13d82974878aa3 |
| institution | Kabale University |
| issn | 1957-7796 |
| language | English |
| publishDate | 2015-06-01 |
| publisher | Association Recherche & Régulation |
| record_format | Article |
| series | Revue de la Régulation |
| spelling | doaj-art-0d0818dd81ea42988b13d82974878aa32025-01-30T14:27:12ZengAssociation Recherche & RégulationRevue de la Régulation1957-77962015-06-011710.4000/regulation.11322Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change?Rui Lyrio ModenesiAndré de Melo ModenesiNorberto Montani MartinsPatrick FontaineWe analyzed Brazil’s development since World War II and especially Presidents Lula and Rousseff’s economic policy by integrating historical and political economy approaches using the concept of “development convention”. Two development conventions have been struggling for hegemony: a pro-growth – state led and a pro-stability – free market convention. Until the 1970s, the “developmentalist” convention was dominant. During the 1980s, a stability convention started to ascend; the rise of neoliberalism reinforced the precedence of stability over growth. In 1999, the macroeconomic tripod – inflation targeting; floating exchange rate; and budget surplus targeting – aligned with the New Consensus on Macroeconomics was adopted. As we argued, it locked economy into a trap: low growth; high interest rates; relatively high inflation; and overvalued currency. Since the 2008 Great Crisis, economic policy has been changing in an attempt to foster growth. For orthodox economists, the tripod was marred or dropped and replaced by a Keynesian policy. For Keynesians, it was hold; it is as if the change had just been a Gattopardo change, a “change that keeps things the same”.https://journals.openedition.org/regulation/11322development conventiondevelopmentalismmacroeconomic tripodPresident LulaPresident Rousseff |
| spellingShingle | Rui Lyrio Modenesi André de Melo Modenesi Norberto Montani Martins Patrick Fontaine Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? Revue de la Régulation development convention developmentalism macroeconomic tripod President Lula President Rousseff |
| title | Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? |
| title_full | Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? |
| title_fullStr | Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? |
| title_full_unstemmed | Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? |
| title_short | Restructuring the Economic Policy Framework in Brazil: Genuine or Gattopardo change? |
| title_sort | restructuring the economic policy framework in brazil genuine or gattopardo change |
| topic | development convention developmentalism macroeconomic tripod President Lula President Rousseff |
| url | https://journals.openedition.org/regulation/11322 |
| work_keys_str_mv | AT ruilyriomodenesi restructuringtheeconomicpolicyframeworkinbrazilgenuineorgattopardochange AT andredemelomodenesi restructuringtheeconomicpolicyframeworkinbrazilgenuineorgattopardochange AT norbertomontanimartins restructuringtheeconomicpolicyframeworkinbrazilgenuineorgattopardochange AT patrickfontaine restructuringtheeconomicpolicyframeworkinbrazilgenuineorgattopardochange |