Luiz Carlos Bresser-Pereira
Crítica e Sociedade, Revista de Cultura Política, UFU, vol. 4 n. 2; 35-51.
The low growth in Brazil since 1994 is due to the preference for immediate consumption that characterizes both economists associated with liberal orthodoxy as to vulgar Keynesianism. This preference prevents them from recognizing the chronic overvaluation of the exchange rate as the central problem since, with trade and financial liberalization, Brazil ceased to neutralize the Dutch disease; and leads them to not defend a disagreeable policy as is the exchange rate depreciation, because it will reduce yields and immediate consumption in the short term. Besides, developmental economists overestimate the power of industrial policy.
