The Brazilian deindustrialization: financialization is not guilty

Vol. 35 No. 2 (2015)

Apr-Jun / 2015
Published April 1, 2015
PDF-English
PDF-English

How to Cite

Gaulard, Mylène. 2015. “The Brazilian Deindustrialization: Financialization Is Not Guilty”. Brazilian Journal of Political Economy 35 (2):227-46. https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/222.

The Brazilian deindustrialization: financialization is not guilty

Mylène Gaulard
Université Grenoble Alpes, France (CREG).
Brazilian Journal of Political Economy, Vol. 35 No. 2 (2015), Apr-Jun / 2015, Pages 227-246

Abstract

The financialization of the Brazilian economy is often criticized as being responsible of the slowdown of capital accumulation in this country. Indeed, very high interest rates are maintained in order to finance the public debt, and this fosters capitalists to get more Treasury bonds rather than to invest in the productive area. Nevertheless, the evolution of the profit rate in this area also explains the particular relation existing between capitalists, finance and productive investment, as Marx showed it more than a century ago.

JEL Classification: E11; E22; N16.


Keywords: investment finance profit deindustrialization Brazil