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O modelo de liberalização financeira dos anos 1990: 'restatement' ou auto-crítica? [The financial liberalization model in the 1990s: a restatement or self-criticism?]

Author

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  • Jennifer Hermann

    () (Universidade Federal do Rio de Janeiro)

Abstract

The paper examines the revisions suffered by the financial liberalization model during the decades of 1980 and1990. Such revisions were forced by two sets of factors: the unfavorable results of some econometric tests of the Shaw-McKinnon model and the experiences of several developed (DC) and developing (LDC) countries with the liberalization policy. In the econometric field, the tests have shown to play a weak explaining role of the two key variables of the model: the real interest rate and the saving rate. As for DC and LDC experiences, the main challenge to the original Shaw-McKinnon model was the banking and currency crises that have followed the liberalization policy in most of the cases. Facing these constraints, the 'modern version' of liberalization has embodied several (Keynesian) critiques to Shaw-McKinnon's financial theory and policy and has been forced to allow for the need of some degree of government intervention in the free choice of financial market concerning its portfolio composition. Further, the new model make a real self-critique, by admitting that, under certain conditions, some degree of financial repression could be necessary and is even beneficial to financial development.

Suggested Citation

  • Jennifer Hermann, 2003. "O modelo de liberalização financeira dos anos 1990: 'restatement' ou auto-crítica? [The financial liberalization model in the 1990s: a restatement or self-criticism?]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 13(2), pages 137-172, July-Dece.
  • Handle: RePEc:nov:artigo:v:13:y:2003:i:2:p:137-172
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    References listed on IDEAS

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    1. Paul Davidson, 1983. "Rational Expectations: A Fallacious Foundation for Studying Crucial Decision-Making Processes," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(2), pages 182-198, January.
    2. Lawson, Tony, 1985. "Uncertainty and Economic Analysis," Economic Journal, Royal Economic Society, vol. 95(380), pages 909-927, December.
    3. Lawson, Tony, 1987. "The Relative/Absolute Nature of Knowledge and Economic Analysis," Economic Journal, Royal Economic Society, vol. 97(388), pages 951-970, December.
    4. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    5. Runde, Jochen, 1990. "Keynesian Uncertainty and the Weight of Arguments," Economics and Philosophy, Cambridge University Press, vol. 6(02), pages 275-292, October.
    6. Paul Davidson, 1987. "Sensible Expectations and the Long-Run Non-Neutrality of Money," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(1), pages 146-153, September.
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    More about this item

    Keywords

    financial policy; financial liberalization; Shaw-McKinnon model;

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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