Vol. 25 No. 4 (2005): Oct-Dec / 2005

Vol. 25 No. 4 (2005)

Oct-Dec / 2005
Published March 27, 2020


A contribution to the debate on the efficacy of monetary policy and some implications in the case of Brazil
Fernando J. Cardim de Carvalho
Brazilian Journal of Political Economy

 The main opposition between Keynesian and Classic monetary theories is defined by the former’s proposition of money non-neutrality in the long period. According to Keynes, it is not possible to describe a monetary economy’s long period position without first specifying the monetary policy it is adopting. The policy is described by the choice of the short-term interest rate which exerts an important determining influence on the long term rate and, therefore, on real investment decisions. Based on this reasoning, inflation target monetary policy regimes are criticized, in particular the one adopted in post-1999 balance of payments crisis Brazil because of its rious impact on investment and growth.

JEL Classification: E52.

Macro-analysis, regulation and the method: an alternative to the methodological holism and individualism to a historical and institutionalist macro-economy
Miguel Bruno
Brazilian Journal of Political Economy

The paper examines the epistemological conditions that make the “regulationist” macro-analysis a possible alternative to the traditional equilibrium approaches. It shows how these analyses allow to overcome the structure-agent dilemma as from the concept of contextual rationality and of a hol-individualist methodology that, combined with the notion of strong historicity, find wide theoretical basis in Bourdieu's sociology, in Braudel's works on economical history and in Lukács's ontology on the social being. The paper also explains its historical origins and concludes with a synthesis of the method and the necessary steps to accomplish this type of macroeconomics approach.

JEL Classification: B41; B40; B59; E19.

Transparency: Bacen versus Bank of England
Eduardo de Carvalho Andrade
Brazilian Journal of Political Economy

The aim of this paper is to compare the degree of transparency of the Brazilian Central Bank (Bacen) with the one verified in the Bank of England (BoE). In order to accomplish this objective, an indicator of transparency is built based on the information that each central bank provides to the public about its monetary policy, its expectation about the future of the economy, its intervention in the financial market, and if there are clear limits and restrictions to the release of information to the general public. The analysis suggests that the Bacen is less transparent and has a less individualistic Monetary Policy Committee in comparison with the BoE. Moreover, it indicates some procedures that could be adopted by the Bacen in order to make its monetary policy more transparent.

JEL Classification: E0, E5.

Mercosur: the dilemma between the customs union and a free trade area
Honorio Kume, Guida Piani
Brazilian Journal of Political Economy

In 2001, the government of Argentina – facing a major economic crisis – took a rather controversial decision and reduced the tariff rates of all capital goods to zero. This became a main source of conflict with Brazil, the only country of Mercosur that produces such goods. This paper discusses two possible scenarios for the resolution of this issue. In the first one, the countries would opt for the maintenance of the customs union. The authors present some suggestions for the rebuilding of the Common External Tariff (CET), by which the countries would take a middle course acceptable to all. The other possible outcome would be a step back in the direction of a free trade area, with no CET at all.

JEL Classification: F13, F15.

Export subsidies, countervailing duties, and welfare
Yu-Ter Wang
Brazilian Journal of Political Economy

Using a simple Cournot duopoly model, this paper provides an important policy implication for trade disputes involving export subsidies. In this paper, the possibility that a foreign export subsidy could benefit the domestic country as well as the foreign country by appropriately using countervailing duties is identified.

JEL Classification: F12; F13; L13.

La reconfiguracion economica internacional
David Ibarra
Brazilian Journal of Political Economy

The developed and developing countries have adjusted with varying degrees of success to the new international order. The world’s evolution has not stopped: Europe and the emerging Asian economies, are struggling to create a multipolar World. In the periphery, some countries (Asia) are modernizing at a fast rate, while others (Latin America) are lagging behind and in need to revise their growth strategies. The decentralization of production and trade driven by transnational firms are shifting the geographic distribution of investment and employment. As a result, the industrialized countries have ceased to provide the bulk of the world’s savings, changing somehow the foundations of the international financial system.

JEL Classification: F00.

Citizens against the state: the riddle of high impact, low functionality courts in Brazil
Matthew M. Taylor
Brazilian Journal of Political Economy

The Brazilian federal judiciary offers an interesting riddle to scholars of judicial politics and policy change. While the courts have played a major policy role over the past two decades, constraining and altering federal policy across a range of subjects, the court system has simultaneously been labeled “dysfunctional.” This paper investigates this riddle: a system plagued by major systemic flaws in its day-to-day operations, which nonetheless still manages to exert a powerful influence on public policy in Brazil. I adopt a new institutional perspective, focusing on how the institutional and normative structure within which judges and other legal actors operate affects policy outcomes.

JEL classification: K0; K4; K40.

Microeconomic impacts of the mergers and acquisitions of energy industries in the World an analysis for the 1990’s
Helder Queiroz Pinto Jr., Mariana Lootty
Brazilian Journal of Political Economy

The energy industries have witnessed a significant growth of global mergers and acquisitions (M&A´s) process in the 1990´s. According to Unctad statistics, the total amount of global M&A deals (domestic and cross borders) on the electric, oil and gas sectors has recorded US$ 329 billions on the 1990-1999 period. The present paper sheds light on M&A process occurred on the energy industries during this period and, based on a sample of 248 transactions carried out by 18 big energy enterprises, develops an empirical microeconomic analysis about the impacts of these transactions over the performance of the firms involved. Overall, the results show significant improvements on the firms’ performance after M&A operations, regarding the following variables: sales, net profits, assets, dividends, and, to a less extent, the ratio (net profits/sales).

JEL Classification: L1; L94;, L95; C14.

Renegotiation of the public debt in conditions of excessive debt
Rodrigo Octávio Marques de Almeida
Brazilian Journal of Political Economy

 This paper studies the debt overhang models and maturity management models, and analyses both theoretically and historically the debt renegotiations which the final outcome is a lower public debt burden. From the theoretical view the renegotiation plans can be Pareto improving, both creditors and debtors can be better-off, and the value of the new debt will price the new reputation and debtors’ willingness to pay. From the historical point of view, funded debts were the instrument that debtors used to improve reputation.

JEL Classification: H63; E43; E63.