The Brazilian Swindle and the Larger International Monetary Problem

Vol. 23 No. 1 (2003)

Jan-Mar / 2003
Published January 1, 2003
PDF-English
PDF-English

How to Cite

Galbraith, James K. 2003. “The Brazilian Swindle and the Larger International Monetary Problem”. Brazilian Journal of Political Economy 23 (1):87-97. https://doi.org/10.1590/0101-31572004-0709.

The Brazilian Swindle and the Larger International Monetary Problem

James K. Galbraith
The author is Lloyd M. Bentsen, Jr. Professor of Government/Business Relations at the Lyndon B. Johnson School of Public Affairs, the University of Texas at Austin, Austin/Texas, USA.
Brazilian Journal of Political Economy, Vol. 23 No. 1 (2003), Jan-Mar / 2003, Pages 87-97

Abstract

The IMF’s recent loan to Brazil is the best seen as a mechanism of political control rather than economic assistance, except in a very unsustainable short run. Thus hard choices between the priorities of Brazil’s working population and those of international creditors cannot be avoided. This essay explores policy options, and goes on to suggest that while the financial sector is certain to dominate American policy discussion in these matters, it would be wiser to view the larger national economic interest of the United States as aligned with those who advocate stable and sustainable national development in Brazil.

JEL Classification: F34.


Keywords: Brazil debt IMF development