The Long Expansion and the Profit Squeeze: Output and Profit Cycles in Brazil (1996–2016)

Guilherme Martins and Fernando Rugitsky ()

Review of Radical Political Economics, 2021, vol. 53, issue 3, 373-397

Abstract: The present paper argues that the recent Brazilian crisis was related to a cyclical profit squeeze that took place between 2009 and 2014, following the long expansion that started in 2003. To do so, the cyclical trajectories of the output and the profit rate in the Brazilian economy for the period between 1996 and 2016 are examined by resorting to the framework established by Weisskopf (1979). The results indicate that profit squeezes are rare in the Brazilian economy, possibly due to the truncated character of the business cycles’ expansions. However, a profit squeeze did take place in the last cycle, partly as a result of the commodities boom, which attenuated the foreign vulnerability of the economy and allowed for a longer than usual expansion. JEL classification: B50, B51,E32

Keywords: cyclical profit squeeze; Brazilian economy; profit rate decomposition; Weisskopf; structuralist Goodwin model (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0486613420982083 (text/html)

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:sae:reorpe:v:53:y:2021:i:3:p:373-397

DOI: 10.1177/0486613420982083

Access Statistics for this article

More articles in Review of Radical Political Economics from Union for Radical Political Economics
Bibliographic data for series maintained by SAGE Publications ().