Resumo

The Brazilian economy faces the deepest contraction in its economic activity of the last sixty years. The decline out put per capita for the period 1980/83 merest compa-rison with that of the period 1928/33. Using semi-official, conservative more sever than that of 1928/33. That current the pression was unleashed by growing difficulties in meeting obligations in foreign exchange is beyond doubt. This article argues that the present form of adjustment to the external crisis is inadequate. The burden of external debt was needlessly magnified by policies, which erroneously identify the interest rate as the crucial adjustment variable.