Financialization, coalition of interests and interest rate in Brazil
Studying the hypothesis of a pro-conservative monetary policy convention in Brazil, as initially formulated by Bresser-Pereira and Nakano (2002) and Erber (2011), we add three particular sub-hypotheses to it: (i) the prevalence of high real interest rates in Brazil for decades has led to the formati...
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| Format: | Article |
| Language: | English |
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Association Recherche & Régulation
2020-06-01
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| Series: | Revue de la Régulation |
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| Online Access: | https://journals.openedition.org/regulation/16636 |
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| author | Luiz Carlos Bresser-Pereira Luiz Fernando de Paula Miguel Bruno |
| author_facet | Luiz Carlos Bresser-Pereira Luiz Fernando de Paula Miguel Bruno |
| author_sort | Luiz Carlos Bresser-Pereira |
| collection | DOAJ |
| description | Studying the hypothesis of a pro-conservative monetary policy convention in Brazil, as initially formulated by Bresser-Pereira and Nakano (2002) and Erber (2011), we add three particular sub-hypotheses to it: (i) the prevalence of high real interest rates in Brazil for decades has led to the formation of a rentier-financial class coalition. Its aim is to maintain high real interest rates so as to gain from the resulting financialization process, fueled by interest revenues (ii) the existence of a “two-way“ public debt contagion effect between the banking reserves market and the public securities market; and (iii) the use of a high interest rate to finance current account deficits. To this end, the paper adopts as its starting point Keynes’s view of the interest rate as an eminently conventional phenomenon. |
| format | Article |
| id | doaj-art-c514d5a8b7e74bc6b6b33e5ae38002ed |
| institution | Kabale University |
| issn | 1957-7796 |
| language | English |
| publishDate | 2020-06-01 |
| publisher | Association Recherche & Régulation |
| record_format | Article |
| series | Revue de la Régulation |
| spelling | doaj-art-c514d5a8b7e74bc6b6b33e5ae38002ed2025-01-30T14:27:29ZengAssociation Recherche & RégulationRevue de la Régulation1957-77962020-06-012710.4000/regulation.16636Financialization, coalition of interests and interest rate in BrazilLuiz Carlos Bresser-PereiraLuiz Fernando de PaulaMiguel BrunoStudying the hypothesis of a pro-conservative monetary policy convention in Brazil, as initially formulated by Bresser-Pereira and Nakano (2002) and Erber (2011), we add three particular sub-hypotheses to it: (i) the prevalence of high real interest rates in Brazil for decades has led to the formation of a rentier-financial class coalition. Its aim is to maintain high real interest rates so as to gain from the resulting financialization process, fueled by interest revenues (ii) the existence of a “two-way“ public debt contagion effect between the banking reserves market and the public securities market; and (iii) the use of a high interest rate to finance current account deficits. To this end, the paper adopts as its starting point Keynes’s view of the interest rate as an eminently conventional phenomenon.https://journals.openedition.org/regulation/16636financializationconventionmonetary policyinterest rate |
| spellingShingle | Luiz Carlos Bresser-Pereira Luiz Fernando de Paula Miguel Bruno Financialization, coalition of interests and interest rate in Brazil Revue de la Régulation financialization convention monetary policy interest rate |
| title | Financialization, coalition of interests and interest rate in Brazil |
| title_full | Financialization, coalition of interests and interest rate in Brazil |
| title_fullStr | Financialization, coalition of interests and interest rate in Brazil |
| title_full_unstemmed | Financialization, coalition of interests and interest rate in Brazil |
| title_short | Financialization, coalition of interests and interest rate in Brazil |
| title_sort | financialization coalition of interests and interest rate in brazil |
| topic | financialization convention monetary policy interest rate |
| url | https://journals.openedition.org/regulation/16636 |
| work_keys_str_mv | AT luizcarlosbresserpereira financializationcoalitionofinterestsandinterestrateinbrazil AT luizfernandodepaula financializationcoalitionofinterestsandinterestrateinbrazil AT miguelbruno financializationcoalitionofinterestsandinterestrateinbrazil |