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...
Guardat en:
| Publicat a: | URI:https://journals.openedition.org/regulation, |
|---|---|
| Autors principals: | , , |
| Format: | Article ou chapitre numérique |
| Idioma: | Anglais |
| Publicat: |
Revue de la régulation
2020
|
| Matèries: | |
| Accés en línia: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| Sumari: | 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. |
|---|