1. Growth, Distribution, and External Constraints: A Post-Kaleckian Model Applied to Brazil.
- Author
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Alencar, Douglas, Jayme, Frederico G., and Britto, Gustavo
- Subjects
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BALANCE of payments , *FOREIGN exchange rates , *ECONOMIC impact , *ECONOMIC expansion - Abstract
The purpose of this research is to analyze whether the Brazilian economy behaved under a wage-led or profit-led regime between 1960 and 2011, considering a Post-Kaleckian model in a context of external constraints. The time span is limited by data availability (i.e., 2011). To answer the question of whether the Brazilian economy works under a wage-led or profit-led regime, we propose a simple Post-Kaleckian model. The model suggests that a profit-led regime is more probable for Brazil. Moreover, a wage-led regime occurs when a balance of payments constrained growth model is taken into consideration. Likewise, the real exchange rate has a positive impact on economic growth through the export channel. This result is a novelty in the recent literature about the relationship between real exchange rate and economic growth within a Post-Kaleckian model. The Brazilian economy was chosen as it is one of the biggest economies in Latin America. [ABSTRACT FROM AUTHOR]
- Published
- 2021
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