The state of the art of monetary policy in Brazil

03/09/2022, 11:39 AM (updated on 03/13/2023, 4:49 PM) | Estimated reading time: 3 min
By Livi Gerbase, policy advisor in Inesc, and Renato Rosa Ph.D. in Economics
The purpose of this report is to present and discuss the state of the art in the debate on monetary policy in Brazil

The purpose of this report is to present and discuss the state of the art in the debate on monetary policy in Brazil. However, from a practical and methodological point of view, monetary policy is inserted in a broader context: since 1999, an economic policy regime called the “macroeconomic tripod” has been in force in Brazil, which consists of the simultaneous adoption of three policies: the primary surplus target regime (fiscal policy); the floating exchange rate regime (exchange policy); and the inflation targeting regime (monetary policy). Thus, the discussion of monetary policy should not be seen separately from other economic policies, as the full understanding of the role and limits of monetary policy requires the contribution of the entire macroeconomic regime in which it is inserted.

The report highlights the need to adopt a new monetary policy in Brazil. Monetary policy should not have as its sole objective the fight against inflation, just as the fight against inflation should not depend only on monetary policy. Controlling the inflationary process must never be neglected, especially when it directly affects the income of the working class and groups in economic and social vulnerability. An inflationary policy, however, must not rely solely on monetary policy as the only instrument. Finally, monetary policy should be oriented towards creating jobs, generating and distributing income, and guaranteeing rights.

The report is divided into four sections in addition to the introduction and final considerations. Section 2 discusses what the “macroeconomic tripod” is, focusing on theoretical aspects and the Brazilian macroeconomic model. Section 3 discusses alternative macroeconomic views and criticisms of the “macroeconomic tripod”, focusing on three views: new developmentalism, social developmentalism, and functional finance. Section 4 discusses the history of monetary policy from 1999 to the present day. Finally, section 5 analyzes some current debates on Brazilian monetary policy.

Downloads

The state of de art of monetary policy in Brazil

Download

Share

Related content

  • G20 ministers receive proposal for global ...
    In the last week, on May 22 and…
    read more
  • Subsidies for fossil and renewable energy ...
    The Institute of Socioeconomic Studies (Inesc) has been…
    read more
  • A voz de uma pessoa e sua opinião
    Primeiramente, estou aqui hoje para contar a minha…
    read more
  • The state of the art of monetary policy in...
    The purpose of this report is to present…
    read more
  • Thematic budget for science, technology an...
    This technical note brings the first version of…
    read more

Thematic budget for science, technology and innovation in medicines (OTMED – ST&I)

08/31/2021, 10:40 AM (updated on 03/13/2023, 4:52 PM) | Estimated reading time: 1 min
This technical note brings the first version of the Thematic Budget for Science, Technology and Innovation in Medicines (OTMED ST&I)

This technical note brings the first version of the Thematic Budget for Science, Technology and Innovation in Medicines (OTMED ST&I), which aims to investigate federal government spending in this area. This is a new methodology, which is yet to mature, but which aims to contribute data on this strategic public spending – especially in the context of Covid-19 – and essential to guarantee the right to health and access to medicines.

Downloads

Thematic budget for science, technology and innovation in medicines (OTMED - ST&I)

Download

Share

Related content

  • G20 ministers receive proposal for global ...
    In the last week, on May 22 and…
    read more
  • Subsidies for fossil and renewable energy ...
    The Institute of Socioeconomic Studies (Inesc) has been…
    read more
  • A voz de uma pessoa e sua opinião
    Primeiramente, estou aqui hoje para contar a minha…
    read more
  • The state of the art of monetary policy in...
    The purpose of this report is to present…
    read more
  • Thematic budget for science, technology an...
    This technical note brings the first version of…
    read more

Cadastre-se e
fique por dentro
das novidades!