Do liberal policy regimes condemn Latin America to quasi-stagnation?
Luiz Carlos Bresser-Pereira, Carmem Feijó, and Eliane Cristina de Araújo
Paper for the Handbook on Secular Stagnation that Andrew Wray and Flavia Dantas are editing for Elsevier. January 2021.
Police regimes are incompatible with economic growth because liberal economists don't see industrialization as a condition for economic development; because they pressed for trade liberalization, ignoring that the import tariffs were a way of neutralizing the Dutch disease; beause they don't see that the growth with foreign indebtedness policy as well as the use of the exchange rate as an anchor to control inflation harm growth because the required capital inflows to finance the respective current account deficits appreciate the national currency, and, so, stimulate consumption while discourages investment; because the austerity programs that they defend are rather a way of defending the interests of rentiers and financiers than a sound macroeconomic policy.