Abstract

This article analyzes Francisco Dornelles’ term at the Ministry of Finance in
1985. In addition to filling the existing gap in historiography, it reconstructs the thinking and
economic actions of Dornelles and Tancredo Neves. Both were conservatives, endorsing a
“monetarist” diagnosis of the Brazilian crisis. This conservatism translated into a relative
continuation of the austerity policy implemented by Delfim Netto. It is argued that Dornelles’
departure from the Ministry of Finance marks an important turning point in Brazil’s economic
history. FGV-RJ and the “delfinist” faction of FEA-USP lose their hegemony over economic
policy, creating space for other schools, such as Unicamp and PUC-Rio.

JEL Classification: B20; N16; N46.