Consumo do governo, juros externos e inversão reprimida: o problema da dívida externa revisitado
This paper analyses the evolution of Brazilian public sector expenditures during the second half of the 1980’s. The interpretation according to which the fiscal crisis is exogenous and caused by the external debt interest is criticized. The great increate in current expenditures after 1984, together with a budget restriction that limited public investment is discussed. Based on it, public sector consumption and not external debt interest payments is considered the most important factor responsible for the public investment trajectory over time during the last five years.