1. Brazil: an economy caught in a financial trap (1993-2003)
- Author
-
Bibiana Medialdea
- Subjects
Finance ,Financialization ,Sociology and Political Science ,lcsh:HB71-74 ,business.industry ,media_common.quotation_subject ,Vulnerability ,lcsh:Economics as a science ,Financial vulnerability ,Trap (computing) ,Market economy ,Economy ,State (polity) ,Debt ,Political Science and International Relations ,financial rent-seeking ,Economics ,public debt ,business ,financial vulnerability ,General Economics, Econometrics and Finance ,external dependence ,media_common - Abstract
In the early 1990s, Brazil entered a financialized economic dynamic in which short-term financial valorization generated by the issuing of guaranteed public debt overshadowed the entire economy. This article analyzes Brazilian economic processes between 1993 and 2003, in particular the bi-directional relationship with external vulnerability, erratic international financing behavior and how State actions to obtain and maintain these resources fostered financialization. As a result, the entire economy became enmeshed in a self-perpetuating trap in which financial activity was predominant over economic activity.
- Published
- 2013