Search

doi: 10.12957/geouerj.2017.32056 The problem of the state government's financial crisis is not simply the adjustment of public accounts, but rather how to do it in a process of sustained economic recovery. In this article, it is argued that fiscal adjustment is not an assumption. The main concern should be to ensure a recovery of the economy, thus avoiding that the adjustment of public accounts hampers this recovery process. The text presents as fundamental bases for a critical diagnosis, seeking to question certain generalizations based on the specificities of Rio de Janeiro. The starting point is the questioning of the theory of "expansionary cyclical contraction" and a synthesis of the different views in the debate on the current problematic.

The problem of the state government's financial crisis is not simply the adjustment of public accounts, but rather how to do it in a process of sustained economic recovery. In this article, it is argued that fiscal adjustment is not an assumption. The main concern should be to ensure a recovery of the economy, thus avoiding that the adjustment of public accounts hampers this recovery process. The text presents as fundamental bases for a critical diagnosis, seeking to question certain generalizations based on the specificities of Rio de Janeiro. The starting point is the questioning of the theory of "expansionary cyclical contraction" and a synthesis of the different views in the debate on the current problematic. [ABSTRACT FROM AUTHOR]