Vol. 43 No. 4 (2023)
How to Cite
Financialization, credit rating agencies, and “policy space”: The Brazilian experience
Abstract
This paper analyzes the restrictions imposed by financialization on domestic
policy space, especially in emerging economies, in light of the actions of credit rating agencies.
The working hypothesis is that these agencies, in their interaction with governments, act to
constrain the policy space from their position in the international financial system. Thereby,
they operate in favor of the financial markets’ agenda through the issuance of sovereign
ratings and at the discursive level. The methodology draws on the case study of Brazil, based
on sovereign ratings and reports issued by S&P Global, Moody’s, and Fitch Ratings, which
shows that such agencies have a vast repertoire to promote the orthodox neoliberal agenda
in the national political and economic process.
JEL Classification: F62; F65; Y80.
Keywords: Financialization policy space credit rating agencies Brazil