1. Brazil: an economy caught in a financial trap (1993-2003)
- Author
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Bibiana Medialdea
- Subjects
Financialization ,financial rent-seeking ,public debt ,external dependence ,financial vulnerability ,Economics as a science ,HB71-74 - 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
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