Banking behaviour and the Brazilian economy after the Real Plan: The post-Keynesian approch

Luiz Fernando de Paula () and Antonio J. Alves ()
Additional contact information
Antonio J. Alves: Rural Federai University of Rio de Janeiro. Rio de Janeiro (Brasil)

BNL Quarterly Review, 2003, vol. 56, issue 227, 337-365

Abstract: This paper aims at analysing--from a Post Keynesian approach--the Brazilian bankingbehaviour in the current phase of the business cycle that is at the semi-stagnation state of the economy. According to the Post Keynesian approach, banks are economic agents that have liquidity preference determined strongly by their expectations under uncertainty, managing their portfolio according to the tradeoff between liquidity and profitability. We argue that banking behaviour in Brazil has been determined by the specific institutional-macroeconomic context of the current phase of the Brazilian economy, with banks taking advantage of the high rates of interest and the conditions in which government has managed its internal debt. But at the same time bankingstrategies are determinant of the current phase since portfolio allocation has been dominated by a short-termist behaviour and high liquidity preference that have resulted in low credit supply and high banking spread.

Keywords: Bank; Banking (search for similar items in EconPapers)
JEL-codes: F33 G21 G28 O16 O19 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9818/9703 (application/pdf)

Related works:
Journal Article: Banking behaviour and the Brazilian economy after the Real Plan: The post-Keynesian approch (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:psl:bnlaqr:2003:42

Ordering information: This journal article can be ordered from
http://www.economiacivile.it

Access Statistics for this article

BNL Quarterly Review is currently edited by Alessandro Roncaglia

More articles in BNL Quarterly Review from Banca Nazionale del Lavoro
Bibliographic data for series maintained by Carlo D'Ippoliti ().