Luiz Carlos Bresser-Pereira
Estudos Avançados, 31 (89): 2017: 7-22.
Brazil has grown extraordinarily between 1930 and 1980 under a developmental economic policy regime; since 1990, it is quasi-stagnant under a liberal regime. Lula did nothing to change it. Dilma Rousseff tried, in 2011, but failed. Rentier-financier liberalism is incompatible with growth, because it keeps interest rates very high and the exchange rate overvalued in the long-term, which depresses private investment. To come out of quasi-stagnation, a developmental policy regime is required - a regime that rejects fiscal and exchange rate populism, defends moderate interest rates, a competitive exchange rates, and progressive taxes. Observ: This was the first time I used the concept of liberal, or developmental "policy regime".
