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Conventions and the Brazilian Fiscal Policy to Face the Aftermath of the COVID-19 Economic Crisis: a Post Keynesian view

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  • M F d C Resende

Abstract

With the exception of 2020, when Brazilian GDP fell because of COVID-19, the policy of 'expansionary fiscal austerity' has been implemented in Brazil since 2015, but with poor results in terms of economic growth. From the Post-Keynesian perspective, sustainable economic growth depends on investment and the latter depends on optimistic conventions. This article analyses the feasibility of a Keynesian fiscal policy to resume Brazilian economic growth and the role of conventions for the success of fiscal policy.

Suggested Citation

  • M F d C Resende, 2023. "Conventions and the Brazilian Fiscal Policy to Face the Aftermath of the COVID-19 Economic Crisis: a Post Keynesian view," Economic Issues Journal Articles, Economic Issues, vol. 28(1), pages 21-42, March.
    • Handle: RePEc:eis:articl:123resende
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    References listed on IDEAS

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    1. Thomas Herndon & Michael Ash & Robert Pollin, 2014. "Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff," Cambridge Journal of Economics, Oxford University Press, vol. 38(2), pages 257-279.
    2. Philip Arestis & Fábio Henrique Bittes Terra, 2015. "Economic Policies to Improve the Current State of the Brazilian Economy," Challenge, Taylor & Francis Journals, vol. 58(6), pages 532-549, November.
    3. J. A. Kregel, 1995. "The Viability of Economic Policy and the Priorities of Economic Policy," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 17(2), pages 261-277, January.
    4. Alberto Alesina & Silvia Ardagna & Francesco Trebbi, 2006. "Who Adjusts and When?The Political Economy of Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 53(si), pages 1-1.
    5. Carmen M. Reinhart & Vincent R. Reinhart & Kenneth S. Rogoff, 2012. "Public Debt Overhangs: Advanced-Economy Episodes since 1800," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 69-86, Summer.
    6. Fraga, Jefferson Souza & Resende, Marco Flávio da Cunha, 2022. "Infrastructure, conventions and private investment: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 351-361.
    7. J. Bradford DeLong & Lawrence H. Summers, 2012. "Fiscal Policy in a Depressed Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(1 (Spring), pages 233-297.
    8. Philip Arestis & Fernando Ferrari Filho & Marco Flávio Resende & Fábio Bittes Terra, 2019. "Brazilian Monetary and Fiscal Policies from 2011 to 2017: Conventions and Crisis," Challenge, Taylor & Francis Journals, vol. 62(3), pages 187-199, May.
    9. Philip Arestis & Fernando Ferrari-Filho & Marco Flávio da Cunha Resende & Fábio Henrique Bittes Terra, 2022. "A critical analysis of the Brazilian ‘expansionary fiscal austerity’: why did it fail to ensure economic growth and structural development?," International Review of Applied Economics, Taylor & Francis Journals, vol. 36(1), pages 4-16, January.
    10. David Dequech, 2000. "Fundamental Uncertainty and Ambiguity," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 41-60, Winter.
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    More about this item

    Keywords

    Conventions; Economic Crisis; Fiscal Policy;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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