Vol. 43 No. 3 (2023): Jul-Sep / 2023

Vol. 43 No. 3 (2023)

Jul-Sep / 2023
Published August 11, 2023


From the national system of technological innovation to the “New Projectment Economy” in China
Elias Jabbour, Uallace Moreira
Brazilian Journal of Political Economy

Deep changes have taken place in China over the past ten years. The debate
increasingly revolves around its new dynamics of accumulation, even questioning under
which typology to frame the current Chinese model. In this paper, we propose to correlate
the Chinese national system of technological innovations, reemerged in the first years of this
century, disruptive technologies such as 5G internet, Big Data and Artificial Intelligence, and
the emergence of new and superior forms of economic planning in that country, sowing the
seeds for what we call “New Projectment Economy”.

JEL Classification: O1; O2; P2.

Why the economy is hard to manage and how this could possibly be dealt with
Bertrand Wong
Brazilian Journal of Political Economy

This paper raises some points about the economy and economic policies, and
presents some possible economic solution, providing the stimulus for economic thought and
importantly action to forestall economic problems. The practicable economic policies suggested
in the paper would to some extent alleviate the serious economic problems of inflation,
deflation, recessions, and unemployment, though it is also hoped that the suggested
economic policies could permanently eliminate these serious economic issues. The successful
implementation of these economic policies would certainly lead to a better society, possibly
with inclusive and sustainable economic growth, employment, and decent work for all.

JEL Classification: D91; E42; E52; E71.

The historical roots of neoliberalism: origin and meaning
Sulafa Nofal
Brazilian Journal of Political Economy

Neoliberalism has succeeded in reaching unprecedented levels of power and
domination. Despite this, the literature shows that many aspects of the history of neoliberalism
remain unclear. In this regard, this article discusses two notable aspects. The first is that
neoliberalism lacks a clear definition and is often confused with many other concepts. The
second aspect relates to the origins of neoliberalism, which are often reduced to a particular
version that does not necessarily reflect the deep roots of neoliberal thought. This article argues
that subjecting the history of neoliberal thought to scrutiny contributes to removing
many of the ambiguities associated with these two aspects. On the one hand, it allows identifying
the different interpretations of neoliberalism, and on the other hand, it shows the fact
that neoliberalism emerged in the midst of the crisis of classical liberalism and as a reaction
to the expansion of collectivism.

JEL Classification: B00

The impossible quartet in a demand led growthsupermultiplier model for a small open economy
José Luis Oreiro, Julio Fernando Costa Santos
Brazilian Journal of Political Economy

The aim of this paper is to investigate the long run sustainability of a growth
path led by multiple non-creating capacity autonomous expenditures in a demand led-supermultiplier
model for a small open economy. Using two different models the results show that
it is impossible to have in the same model long-term economic growth driven by the non-capacity
creating component of domestic demand, exogenous income distribution, long-run balance between productive capacity and aggregate demand and balance of payments equilibrium.
Economic viability of the balanced-growth path demands growth to be led by exports,
at least for small open economies.

JEL Classification: E12; E37; P10

The commodity reserve currency chapter: Friedrich A. Hayek, John Maynard Keynes, and the International Monetary Order
Keanu Telles
Brazilian Journal of Political Economy

The frontal clash in the pages of Economica between Friedrich A. Hayek and
John Maynard Keynes in 1931 was unique in scale and influence. Although this event
had intense repercussions on the profession as a whole, in 1943 occurred a less discussed
episode involving both men. Hayek and Keynes entered into controversy regarding the refoundations
of the international monetary order post-Second World War and the commodity
reserve currency proposal. This round was somewhat neglected but is historiographically
relevant since it was the only public debate with the active engagement of both sides in
a professional journal after 1931. Moreover, it epitomized the personal and intellectual mature relationship of Hayek and Keynes, marked by convergence, dialogue, and friendship.
This collaboration was particularly developed when the London School of Economics (LSE)
evacuated to Cambridge during the Second World War and Keynes found rooms for Hayek
in King’s College, Cambridge.

JEL Classification: B25; B31; B41.

What Have We Learned about National Development Banks? Evidence from Brazil
Ricardo Barboza, Samuel Pessoa, Fábio Roitman, Eduardo Pontual Ribeiro
Brazilian Journal of Political Economy

There are 553 development banks in the world: 18% of these institutions have
emerged since the 2008 financial crisis. There is a large theoretical literature on such institutions,
but the evidence on their effectiveness is scattered. This paper provides a systematic
review of causal effect studies of one of the largest and most representative development
banks in the world, the Brazilian Development Bank (BNDES). We review 48 academic papers
that estimate BNDES loans and credit programs impact in several policy dimensions. In
general, the evidence indicates that development banks can be an effective instrument to increase
investment, exports, employment and GDP, particularly when borrowers are micro,
small and medium-sized companies. The Brazilian experience also suggests that development
banks can be an important tool to fight against climate change, reducing deforestation. On
the other hand, evidence indicates that the greatest difficulty for these institutions is to generate
positive impacts on productivity, an essential variable for economic growth. Finally, the
evidence is inconclusive on political influence on development bank’s loans.

JEL Classification: H81; L38; L52.

Fritz Redlich and the entrepreneur as God and demon
Rafael Galvão de Almeida
Brazilian Journal of Political Economy

This work recovers the contribution of Fritz Redlich (1892-1978) to the economic
thought. Redlich wrote important works in the disciplines of economic history, entrepreneurship
and business history. Amongst Redlich’s main ideas on the entrepreneur there is
his distinction among different types of entrepreneurs. Redlich was also one of the first authors
to analyze the structural problems of entrepreneurial action, proposing the idea of “demonic
entrepreneur”, in which the accumulation of power caused by the entrepreneurial activity
destroys the innovative spirit of the system, turning the entrepreneur into an enemy of

JEL Classification: B25; L26; N01.

Do political commentaries command? The case of the Central Bank of Brazil
Gokhan Sahin Gunes, Dila Asfuroglu
Brazilian Journal of Political Economy

This paper investigates whether political pressure affects the conduct of
monetary policy in Brazil. For the period between January 2010 and August 2020, we
estimate a modified Taylor rule to empirically test whether the calls for lower interest rates
by presidents induce Central Bank of Brazil (BCB) to lower the policy rate. We document
that BCB is more likely to set the policy rate in line with the preferences of political leaders.
We also show that the response of BCB to political pressure remained significant even though
political pressure diminished in recent years.

JEL Classification: E42; E43; E52; E58.

Reflections on the progressivity of the pension policy in Brazil: a contribution to the debate
Luís Eduardo Afonso, Otávio José Guerci Sidone, Geraldo Andrade da Silva Filho
Brazilian Journal of Political Economy

This article makes a reflection on the progressivity of the pension policy in Brazil,
based on the debate between Hoffmann (2021) and Cardoso et al. (2021a, 2021b) published
in REP. The adequacy and equity dimensions should occupy a prominent space in this analysis.
The empirical literature, through the calculation of the Replacement Rate and the Internal Rate
of Return, provides evidence about progressivity of old-age benefits of RGPS, in the dimensions
of income, sex, education and type of benefit. As for the federal RPPS, there is less clear
evidence of progressivity in terms of sex, and evidence of regressivity in terms of income.

JEL Classification: H55; D63; J26.

Growth regimes in central and peripheral countries: an econometric analysis, 1980-2018
Emiliano Lopez, Deborah Nogueira
Brazilian Journal of Political Economy

We explore structural differences in growth patterns and income distribution between
central and peripheral countries. We provide dimensions that account for the structural
limitations that dependent positions have in the peripheries and semi-peripheries. We conducted
an analysis through different estimates of panel data models for 35 central and peripheral
countries for the period 1980-2018. In particular, in addition to making the usual estimates of
the components of aggregate demand, we include three variables that we consider representative
of the dynamics that capital accumulation takes in the periphery: participation in global
value chains, levels of foreignization of economies and labor productivity differentials.

JEL Classification: F43; E25; C33.

Radical uncertainty and the effect of transport infrastructure on land prices
Nestor Garza Puentes, Jenifer Garza
Brazilian Journal of Political Economy

Most contributions in the academic literature identify a positive effect of transport
infrastructure on land prices. However, their short-run dynamics has not been routinely
analyzed. One of the reasons for this lack of research is because neoclassical urban land eco-nomics models underlie, in some cases implicitly, most of the available literature on the topic.
In this theory, land values converge to their long-term trends regardless of short-term
shocks. We build upon post-Keynesian monetary circuit theory to design a spatial urban economics
testing framework, building upon the contributions of Abramo (2011) and Alfonso
(2007, 2017). In this tradition, short-term shocks have long-term effects on the spatial distribution
of land values due to radical uncertainty. Our case study is Transmetro, a Bus Rapid
Transit (BRT) project in Barranquilla (Colombia). We use static and dynamic panel-estimation
to test the short-run dynamics of spatial land price adjustments during 2000-2010, including
the construction and delivery years 2006-2010. This case study offers a good assessment
opportunity because of featuring prominent problems and delays. We find volatile
short-run adjustments that run counter to neoclassical predictions, while resembling spatial
land price adjustments exposed to radical uncertainty.

JEL Classification: B41; B52; E12; R30.