Financialization, coalition of interests and interest rate in Brazil

Financiarisation, coalition d’intérêts et taux d’intérêt au Brésil

Luiz Carlos Bresser-Pereira (), Luiz Fernando de Paula and Miguel Bruno

Revue de la Régulation - Capitalisme, institutions, pouvoirs, 2020, vol. 27

Abstract: Studying the hypothesis of a pro-conservative monetary policy convention in Brazil, as initially formulated by Bresser-Pereira and Nakano (2002) and Erber (2011), we add three particular sub-hypotheses to it: (i) the prevalence of high real interest rates in Brazil for decades has led to the formation of a rentier-financial class coalition. Its aim is to maintain high real interest rates so as to gain from the resulting financialization process, fueled by interest revenues (ii) the existence of a “two-way“ public debt contagion effect between the banking reserves market and the public securities market; and (iii) the use of a high interest rate to finance current account deficits. To this end, the paper adopts as its starting point Keynes’s view of the interest rate as an eminently conventional phenomenon.

Keywords: financialization; monetary policy; convention; interest rate; financiarisation; politique monétaire; convention; taux d’intérêt (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.openedition.org/regulation/16636 (text/html)
https://journals.openedition.org/regulation/pdf/16636 (application/pdf)

Related works:
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:rvr:journl:2020:16636

DOI: 10.4000/regulation.16636

Access Statistics for this article

More articles in Revue de la Régulation - Capitalisme, institutions, pouvoirs from Association Recherche et Régulation
Bibliographic data for series maintained by Pascal Seppecher ().