Abstract The relationship between money and credit is analyzed differently by Orthodoxy, which, in general, analyzes it using the commodity money approach; and Heterodoxy, which, at large, adopts the Chartalist approach. Thus, orthodoxy postulates a monetary theory of credit; and heterodoxy, a credit theory of money, where money is, by nature, credit. The State uses its sovereignty to define what will (or will not) be accepted as money in the payments of transactions due to itself. And Knapp’s contribution in structuring a theory of state money meets Innes’s credit theory of money, supplying an alternative theory of money.
ABSTRACT This paper investigates the relationship between the Brazilian development model, characterized by the re-primarization and deindustrialization of its productive structure, and the increase in greenhouse gas emissions (GHG). For that, the study provides estimates using a panel data model for Brazilian states to investigate the relationship between carbon dioxide equivalent (CO2e) emissions and some key variables between 2003 and 2022. Our findings suggest that the composition of productive structure is crucial in determining the gas emissions in Brazil. Furthermore, our results also point out the importance of increasing sophistication and knowledge intensity of its produced goods as a strategy to reduce GHG emissions.
ABSTRACT Ignacy Sachs was a notable economist of the classical developmentalist school. Born in Poland, he studied economics in Brazil and after the war returned to his home country to work in the diplomatic service and pursue his PhD in economics at the University of Warsaw. He then studied with Michal Kalecki. In 1968 he became a professor at the École d’Hautes Études en Sciences Sociales, in Paris, and from there he became one of the pioneers of the theory of sustainable development. He has always maintained a very close relationship with Brazil, having created a Study Group on Contemporary Brazil at the Maison des Sciences de l’Homme.
ABSTRACT This article examines Brazil’s ambivalent stance toward the liberal global financial order. Focusing on the period from 2003 to 2022, it analyzes how successive governments alternated between liberal orthodoxy and developmentalist strategies. While Brazil occasionally supported initiatives challenging liberal hegemony, it simultaneously upheld core principles of the prevailing order. We argue that this ambiguity stems from domestic political dynamics and reflects the broader tension faced by aemerging economies as they navigate between developmentalist aspirations and the constraints of global financial norms.
ABSTRACT This work aims to analyze Brazilian inflationary dynamics between 2011 and 2019, performing a structural decomposition analysis of the Input-Output Price Model Matrix. Our framework is the Surplus Approach and the cost-push inflationary perspective. The period is divided into three phases. In the first one, 2011-2014, the major cause of Brazilian inflation was the international quotation of commodities in local currency. In the second one, 2015-2016, the main factor is the profit margins behavior, followed by unit labor cost. In the last phase, 2017-2019, once again, commodity prices in local currency became the major inflation cause in Brazil.
Abstract The article initially presents evidence about the growth dynamics of DPMFi, the main component of DBGG, between 2011 and 2019. This dynamic occurred predominantly by the incorporation of the interest rate service even when the redemption of securities was higher than the issuance of securities and a primary surplus was obtained. Paradoxically, the growth of the stock dd DPMFi occurred jointly with the continuous expansion of the money value held as bank deposits in the Single Treasury Account at the Central Bank This expansion took place independent of the primary result obtained in the period considered. The evidence also suggests that the use of these funds of the Single Treasury Account to accelerate the rescue of DPMFi was limited by the control of the liquidity necessary to keep the Selic rate at a structurally high level, which proved necessary to achieve the inflation target. This implied the expansion of REPO operations, which, in turn, also increased the interest rate service.
ABSTRACT In 2020, after decades of “great international circulation” - a strategy of pursuing economic growth and development through export-oriented production - China announced that it would adopt a “dual-circulation” strategy. As was argued, “this means that, while China will continue to engage with global markets and supply chains, it will rely on domestic markets rather than external demand to drive economic growth” (Yu, 2023). What happens to the Chinese growth rates under the dual circulation strategy? Is it inevitable that the dramatic slowdown of growth that occurred since 2007 will become permanent? This paper argues that the slowdown of the Chinese growth is due not only to the objective factors (slowdown of population increase, approach to the technological frontier), but also to policy choices made well before the “dual-circulation” strategy emerged. It is due first and foremost the cessation of foreign reserve accumulation after the “Great Recession” of 2008-09 that led to the appreciation of the yuan, decline in the growth of export and investment. It is also argued that there are not only temporary costs of decoupling associated with restructuring (reorientation from foreign to domestic markets), but also permanent costs caused by the decline in international specialization and division of labor. It means that high growth rates could be maintained only at a higher price, in particular only with an even higher share of investment in GDP. Such a strategy can be justified only by security consideration, not economic ones.
ABSTRACT In economic sociology, markets are understood to be embedded in the social network, meaning that exchanges are subject to various factors, including norms, conventions, values, institutional dynamics, and power relations. The construction of a social order in markets refers to the coordination problems involving value, cooperation and competition that must be resolved. This literature can be related to studies on coopetition in supply chain management, which address legitimate business strategies involving cooperation among competing firms within a market. Although coopetition acknowledges the influence of social aspects in the dynamics it investigates, these aspects are approached in a fragmented and unsystematic manner. In order to connect these topics, this study carried out a systematic review and content analysis to identify the relationship between the social factors of coopetition in supply chain management and the economic sociology regarding the social order of markets. As a result, seven key factors were identified that can either contribute to or threaten the social order of markets in contexts where coopetitive strategies are adopted. This analysis contributes to the development of strategies aimed at market stabilization through the adoption of coopetition in supply chain management.
ABSTRACT The European Union (EU) Cohesion Policy promotes sustainable transitions. It emphasises establishing a solid Circular Economy (CE) plan and a Renewable Energy (RE) transition effort for an environment that matches the United Nations’ sustainable development goals. This article compares the impact of the European Cohesion Policy on CE practices and RE in Portugal and Slovenia during the last funding programme from 2014 to 2020. Aligned with the EU Green Deal goals, this research analyses qualitative material and quantitative data in indexes crucial to track sustainability development in Portugal and Slovenia, leading to a forecasting model for the following years (until 2027). These countries were picked due to their similarities in economic circumstances and environmentally friendly legal frameworks that allow comparison of the two case studies without overlooking crucial variables. By focusing on 12 dimensions within the CE and RE dimensions, the study aims to identify patterns contributing to a comprehensive understanding of the specific needs and strategies to strengthen project selection and implementation in both countries for the 2021-2027 EU Cohesion Policy Programme.
ABSTRACT This article is an essay. Its objective is to examine, from the point of view of normative economics, public policy regarding the legalization of cannabis for recreational use. There are conflicting moral ideas when analyzing the legalization and regulation of this market. It is also intended to highlight that this is a field of study in political economy. The main argument is that the analysis of market legalization must be normative, and empirical evidence derived from economic analysis is relevant to regulating the legalized market. The essay initially analyzes the expected functioning of the legal market and then presents the available empirical evidence. The essay also describes the central moral ideas underlying public health policy evaluations. The essay defends an alternative moral idea to the traditional ones, based on maximizing individual freedom that is restricted to the freedom of others and on the fact that consumers’ autonomy is limited. Finally, the discussion section speculates how tolerance could produce gains in mutual well-being. The discussion is fundamental in the results obtained from the paradoxes of Amartya Sen and Karl Popper. There are distributional conflicts around subjective perceptions of well-being. In this sense, the conflict would be dissipated by a win-win outcome in prevailing tolerance, implying a Kaldor-Hicks optimal status quo. However, this conclusion is speculative and suggests an agenda for theoretical and empirical research in economic analysis.
ABSTRACT This article offers two contributions to the literature on the subject of exchange rate determination. In the theoretical field, we elaborate the channel through which structural factors, of a lasting nature, influence the formation of the exchange rate based on their effects on the short-term determinants of this rate, within the scope of the Harvey’s model (2009) . In the empirical field, we estimate an exchange rate equation for Brazil, for the period 1996-2022, aiming to investigate the adherence of the Harvey’s model (2009) to the Brazilian case. The Autoregressive Distributed Lag Model (ARDL) with the Error Correction Term (TCE) was adopted as an estimation method using quarterly data. The results found suggest the relevance of conventions, expectations, and financial flows, as well as the short-term and speculative bias of foreign exchange market agents, in determining the exchange rate.
RESUMO A condição estrutural da sociedade brasileira é marcada pela desigualdade, cenário que se agrava pela persistência e aprofundamento do trabalho informal, instabilidade da renda familiar dos grupos iniciais da pirâmide de rendimentos, e índices preocupantes de pobreza e extrema pobreza. É sob o olhar da tentativa de superação da pobreza e da extrema pobreza que são debatidas as propostas de renda básica e de programas como o Bolsa Família e Auxílio Brasil. Este estudo é resultado de uma pesquisa documental e bibliográfica, realizada em 2024, com o objetivo de refletir sobre a transferência de renda no Brasil, em seus aspectos teóricos e percursos de implementação de programas dessa natureza. Os achados da pesquisa estão organizados em dois eixos centrais: debates e experiências de programas de renda básica no Brasil; e programas de transferência de renda condicionada, o Programa Bolsa Família e Programa Auxílio Brasil. Seus resultados permitem afirmar que o PBF, em que pese sua relevância na diminuição da pobreza, impediu que a proposta de renda básica fosse assumida como uma política federal e, portanto, válida para todo o país. Além disso, a pesquisa também mostra que, como o PBF atua na esfera da renda, não altera os determinantes estruturais que geram a pobreza e a extrema desigualdade de renda existente no Brasil.
RESUMO O artigo analisa os determinantes da pobreza intergeracional no Brasil a partir, essencialmente, de aspectos sociocomportamentais descritos em Lewis (1966) e tendo como base variáveis sobre valores morais dos entrevistados extraídas da WVS. Para isso, estimou o modelo Logit e seus efeitos marginais. Constatou-se que quase metade dos pobres no Brasil herdaram a pobreza de seus pais. Ter muitos filhos, ser evangélico e residir na região Nordeste aumentam as chances de ser um pobre intergeracional, sendo que os anos de escolaridade do respondente e de seu pai diminuem esse risco. A pobreza e sua transmissão ao longo de gerações devem ser compreendidas a partir de uma visão mais ampla, que permita incorporar a influência de valores culturais em suas causas.
RESUMO Este artigo examina análises liberais e marxistas do fascismo, delineia criticamente os debates sobre o “retorno do fascismo”, e considera se o fascismo pode emergir repetidamente ao longo do tempo e em diferentes contextos políticos e geográficos. Análises interdisciplinares estão, em geral, mais bem posicionadas para interpretar a ascensão do fascismo devido à sua abordagem integrativa, reunindo conceitos e argumentos advindos da economia, política, sociologia, relações internacionais e geografia. Essa base interdisciplinar e historicamente bem fundamentada permite sugerir que uma forma específica de fascismo neoliberal está emergindo hoje, no contexto da crise sistêmica do neoliberalismo enquanto sistema de acumulação dominante.
RESUMO Este artigo analisa como intelectuais do ISEB - como Roland Corbisier, Nelson Werneck Sodré, Álvaro Vieira Pinto, Alberto Guerreiro Ramos e Roberto Campos - abordaram os conceitos de cultura, alienação e imperialismo em suas agendas de pesquisa entre os anos de 1954 e 1960. Com base em conferências e textos do período, o estudo evidencia interpretações heterogêneas da noção de cultura e suas articulações com o projeto de desenvolvimento nacional. Argumenta-se que o discurso isebiano constitui um sistema radicular diversificado, que combina teoria da modernização, marxismo nacional e crítica pós-colonial em formação, antecipando diagnósticos sobre o que mais tarde seria definido como “imperialismo cultural”.
ABSTRACT This article explores the challenges of monetary policy in small open economies facing a sustained excess supply of foreign exchange (FX) in the domestic market. In this context, the conventional prescription based on the open-economy trilemma suggests that central banks cannot simultaneously manage both interest rates and exchange rates. However, governments may wish to continue conducting monetary policy while avoiding domestic currency appreciation, as this could conflict with their development goals. Can policymakers avoid the trilemma prescription in this case? The article analyzes the theoretical foundations of the trilemma and discusses its potential limitations. It begins by examining the uncovered interest parity (UIP) condition, which underpins the trilemma, emphasizing that arbitrage forces do not always equilibrate returns due to factors such as market incompleteness, transaction costs, and exchange rate risk/uncertainty. It then demonstrates that, in the case of an excess supply of foreign currency, the central bank can intervene in the FX market and use sterilization to maintain interest rates unchanged, provided it has the capacity to issue domestic bonds. The central bank’s ability to endogenously adjust the supply of domestic assets to meet excess demand is a key theoretical element that contradicts the trilemma, which implicitly assumes that the stocks of both domestic and foreign assets are fixed. Finally, a model is developed to assess the conditions under which central banks can successfully manage both interest rates and exchange rates while fulfilling the solvency condition.
ABSTRACT This research considered data from 124 countries (cross-section) to assess the effects of trade freedom (TF) on food insecurity (FI). The TF proxies, defined by Extreme Bounds Analysis, were tested in linear/non-linear formats, for different income-levels and using quantile-regressions. We found that a higher TF could be useful in lower-income countries and/or those with critical FI cases, but it would be ineffective where TF is very low/high. Moreover, FI would be worse in poor/recessive, inflationary and landlocked economies, rural areas, with overvalued exchange rates, high population growth, low agricultural productivity, with armed conflicts and/or natural disasters and a hot-dry climate.
ABSTRACT The subjectivity and quantification, assumptions on a non-static mechanism, and value-free sciences are critical to account for the disfavor of the mathematization of economics. These elements are essential to argue because economics involves subjective human behavior and is a non-static mechanism that cannot be accurately quantified, making it difficult for economics to conform to the value-free nature of science. This paper discusses several ideas of particular importance from which economics should be viewed and dealt with. This paper suggests that the mathematization of economics should not be seen as a tool to equate economics with other pure sciences.
RESUMO A concentração de riqueza vem ganhando importância no debate internacional após a publicação de O Capital no século XXI, de Thomas Piketty, que recolheu dados sistemáticos sobre a dimensão e a evolução do fenômeno nas economias avançadas ao longo dos últimos séculos. Em particular, a pesquisa de Piketty revela uma importante contração da desigualdade de riqueza ao longo do século XX, que, contudo, não se sustenta nas primeiras décadas do século XXI. O que é possível afirmar sobre os níveis e a trajetória histórica da desigualdade de riqueza no Brasil, um dos países mais desiguais do mundo? Investigamos as estimativas disponíveis desde o século XVII. O trabalho é organizado a partir das diferentes fontes e abordagens utilizadas para a construção das estimativas. Destacam-se duas conclusões: a) a concentração patrimonial apresenta níveis extremos e notável estabilidade ao longo do tempo, a despeito de profunda transformação na composição dos ativos; b) todas as estimativas disponíveis possuem limitações significativas. A disponibilidade de dados públicos adequados, junto ao aperfeiçoamento de procedimentos já utilizados, é indispensável para o desenvolvimento da literatura sobre a concentração de riqueza no país, primeiro passo para um efetivo engajamento público com a questão.
ABSTRACT Furtado, one of the founding fathers of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), can be considered both a classical developmentalist and an ECLACian. However, in view of the independence and originality with which he analyzed the problem of underdevelopment, leading to exhaustion his emphasis on historical, economic, and social particularities in the formulation of explanatory theories of development and the tendency to stagnation in periphery countries, it is acceptable to surrender to the pleonasm that Furtado bequeathed a Furtadian theory of development. This paper analyses Furtado’s main thesis on underdevelopment, development, and stagnation. The study has two main contributions: first, to emphasize that, by having formulated an analytical approach in which underdevelopment and development are strongly conditioned by historical and social factors, Furtado’s theory is still relevant for understanding many economic problems of periphery countries like Brazil and other Latin American countries today; and second, which is my another contribution, to show that it was Furtado (and not other economists) who, by investigating the issue of natural resources abundance in the Venezuelan economy at the end of the 1950s, pioneeringly elaborated a refined theory on the phenomenon that would later be termed the “Dutch disease” and “the resource curse”.
