Abstract

The 2007-2008 international financial crisis (IFC) and the ‘Great Recession’ (GR) had worldwide effects. In the case of Argentina and Brazil, the reduction and improvement in composition of public external debt, the previous policy of international reserves accumulation combined withleft-wing political affinity between governments, provided some space for countercyclical macroeconomic policies. Consequently, its governments were able to face the IFC and GR without following traditional tightened or pro-cyclicalmacroeconomic policies. This article examines the consequences of the IFC and the GR in Argentina and Braziland thecountercyclical macroeconomic policies that were implemented during the period 2009-2014. 

JEL Classification: F63; O23; O54