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Do liberal policy regimes condemn Latin America to quasi-stagnation?

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  • Bresser-Pereira, Luiz Carlos
  • Feijó, Carmem
  • Araújo, Eliane Cristina de

Abstract

Police regimes are incompatible with economic growth because liberal economists don’t see industrialization as a condition for economic development; because they pressed for trade liberalization, ignoring that the import tariffs were a way of neutralizing the Dutch disease; beause they don’t see that the growth with foreign indebtedness policy as well as the use of the exchange rate as an anchor to control inflation harm growth because the required capital inflows to finance the respective current account deficits appreciate the national currency, and, so, stimulate consumption while discourages investment; because the austerity programs that they defend are rather a way of defending the interests of rentiers and financiers than a sound macroeconomic policy.

Suggested Citation

  • Bresser-Pereira, Luiz Carlos & Feijó, Carmem & Araújo, Eliane Cristina de, 2021. "Do liberal policy regimes condemn Latin America to quasi-stagnation?," Textos para discussão 541, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    • Handle: RePEc:fgv:eesptd:541
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    References listed on IDEAS

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    2. Enrique Alberola & Iván Kataryniuk & Ángel Melguizo & René Orozco, 2018. "Fiscal Policy and the Cycle in Latin America: the Role of Financing Conditions and Fiscal Rules," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 36(85), pages 101-116, April.
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    7. André Nassif & Luiz Carlos Bresser-Pereira & Carmem Feijo, 2018. "The case for reindustrialisation in developing countries: towards the connection between the macroeconomic regime and the industrial policy in Brazil [The economic implications of learning-by-doing," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(2), pages 355-381.
    8. Michael Gavin & Roberto Perotti, 1997. "Fiscal Policy in Latin America," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 11-72, National Bureau of Economic Research, Inc.
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