Vol. 7 No. 4 (1987): Oct-Dec / 1987

Vol. 7 No. 4 (1987)

Oct-Dec / 1987
Published October 1, 1987


The changing of the pattern of financing investment in Brazil
Luiz Carlos Bresser-Pereira
Brazilian Journal of Political Economy

The pattern of financing investment is changing in Brazil. During the 70’s it was
based on the classical pattern that prevails in the early stages of development, that is, on
state and external financing. But, in the second part of the 70’s this pattern breaks down as
the public sector loses its savings capacity. ln the second part of the 80’s, the public sector is
supposed to recover partially its saving capacity, while the private sector assumes an increasing
role in investment.

JEL Classification: F34; H63; H10.

Kalecki's determination of profit: an empirical analysis of the United States, 1947-1985
Ednaldo Araquém da Silva
Brazilian Journal of Political Economy

In contrast with usual exegesis found in the literature, Kalecki’s profit model has
been estimated using U.S. annual data between 1947-1985. Assuming one-year investment
lag, Kalecki ‘s model explains 96% of the variation in real gross U.S. profits in the period
analyzed. According to the estimated profit multiplier, one billion 1982 dollars increase in
real gross investment (augmented by the government and external deficits) would increase
real gross profits by 1.1 billion dollars and capitalist consumption by 63.3 million dollars.
However, the estimated profit multiplier is fairly low when compared with Kalecki’s own
estimate for the U.S, during the Great Depression.

JEL Classification: E25; B51.

Quantitative equations and their analytical reach
Luiz Afonso Simoens da Silva
Brazilian Journal of Political Economy

This article presents a review of literature and debates on quantity equations
and monetary theory. It follows the outlines of a general critique on the concept of velocity
of circulation of money and the inconsistency of the neoclassical assumptions. And it
ends up by concluding that quantity equations are not important to the development of a
monetary theory.

JEL Classification: B22; B41.

Dynamics and typology of the contemporary world economy
Geraldo Müller
Brazilian Journal of Political Economy

Transnationalization of productive, commercial, technological, and financial
processes which occurs through transnational corporations has produced a specific economic,
social, political and cultural space which is distinct from national space. The contemporary
world economy, marked by countless ongoing technical and economic processes
which configure the third industrial revolution, can be defined by the interactions between
national and transnational space, neither of which can be said to be disappearing. The lines
of force created by the conflictual interactions between the transnational oligarchy and the
various national oligarchies are photographed in this study from the national angle and at
three moments since 1950. The outcome is a set of typologies classifying countries on which
information was available in 1960, 1970 and 1981.

JEL Classification: P51; P52.

A review of the crisis in economics (Keynesianism versus monetarism)
Patrício Meller
Brazilian Journal of Political Economy

This paper reviews the different elements suggesting the existence of a crisis in
the economic science. In particular it is examined the possibility or impossibility of coexistence
of different paradigms in Economics; is it possible the synthesis of different paradigms?
why yes or why no? Also, it is reviewed the recent rnethodology discussion related to the
lack of relevance and lack of explanation of Reality of present formal and esoteric theoretic
models; modern formal theory is more interested in optimizing than in explaining. How did
we arrive to this state of affairs and what to do about it. Latin America faces urgent economic
problems, therefore relevance should be the main focus of most economic research.

JEL Classification: B22; B41.

Wage policy and income distribution: a proposal for discussion
Fábio Giambiagi, Ricardo Cicchelli Velloso
Brazilian Journal of Political Economy

Este artigo sugere uma política governamental para melhorar a distribuição de
renda brasileira que se baseia na aplicação de uma fórmula que faz com que os aumentos de
produtividade sejam repartidos de acordo com os salários relativos dos trabalhadores. Num
contexto em que os constrangimentos de curto prazo – especialmente a inflação – não são tão
importantes como eram até há pouco e os problemas estruturais tendem a ser o alvo principal
da política do Governo, as conclusões deste artigo são que uma melhor distribuição do rendimento
pode ser obtida se a economia continuar crescendo a taxas suficientemente altas e que
isso pode ocorrer provocando perdas na renda de algumas classes de renda.

JEL Classification: J38; J31; D31.

Dividend policy: the mediation between managerial control and shareholding
Arthur Barrionuevo Filho
Brazilian Journal of Political Economy

This paper discusses the dividend policy and its effects on the relationship and
dependency between managers and shareowners. By the way, starting from the classic economist’s
view about the split of surplus between profits and interests, and from Hilferding’s
view of dividends as a specific form of earning yield from property-capital, analyses some
studies of finance economists about the importance of dividends policy. It concludes with a
remark about the advantages yielded by the shareowners who own the majority of capital.

JEL Classification: G35.

Notes and Comments

The agricultural protest and policy changes for the sector
Fernando Homem de Melo
Brazilian Journal of Political Economy

This paper aims to make a recollection of the government annoucements since
1986 on the agricultural policy and the reaction of organised groups from the sector to it,
with special attention given to the role of minimum prices.

JEL Classification: Q11; Q18.

The State and economic development of Formosa
Alice H. Amsden
Brazilian Journal of Political Economy

This is a study of the role of the State in the development of the Republic of
China after Second World War. It aims to understand how the State accelerated the rate of
capital accumulation, the role of exports and the nature of the State itself under the dictatorship
that ruled the country for decades.

JEL Classification: N15.


Speech of the new Finance Minister
... ...
Brazilian Journal of Political Economy

This is the speech Luiz Carlos Bresser-Pereira gave as he took the position of
Finance Minister on the 30th of May 1987.

JEL Classification: H00; E31.

New Cruzado Plan
... ...
Brazilian Journal of Political Economy

This is a copy of the speech given by the minister of Finance Bresser-Pereira at
the occasion of the announcement of a new round of price freezing, the Decree stablishing
such freezing and the ‘Objectives of the Economic Policy of the Sarney Government”.

JEL Classification: E31; E52.