Abstract

Fiscal crisis and cyclical character of state intervention are the two pillars of
Bresser-Pereira’s diagnosis about the current crisis. The state’s immobilization and the recovery
of its power of intervention are in the center of the discussion. The solution depends on,
on one hand, the overcome of fiscal crisis simultaneously with a price stabilization program.
On the other hand, to redefine the goals and roles, which bring forward the state’s contraction,
but not its elimination. Finally, the economic populism and nationalism aren’t the root,
but are barriers to overcome the crisis.

JEL Classification: Y30; E62; O23.