Keystone Business Solutions

  Brazilian policymakers were super excited about embracing the outward-oriented adjustment and completely changed the relative price incentives to favor tradable goods. So cool! Production, for example, did not compensate for the industry's loss of markets and competitiveness as a result of the collapse of domestic investment. Despite the domestic industrial recession and devalued exchange rates, exports were relatively strong, boosting a few traditional industries such as farming and manufacturing, as well as some interesting investments in paper, steel, and electronics. That is, the export game was all over the place depending on what was going on in the domestic market, and it was terrible at encouraging industrial investment. Yo, the reason they cut public investments was because there was a lot of external debt on public enterprises, and they were all about the neoliberal vibe, you know? For example, government investments completely crowd out private investments, so when t...

  OMG, interest rates were sky high, and no one wanted to spend money, but inflation continued to rise. SMH. The orthodox stabilisation program was completely inadequate for the overall vibe of the Brazilian economy. The high volatility of exchange and interest rates completely disrupted the conventions that keep normal pricing in check in the Brazilian economy. For example, the costs of money and making things, particularly imported materials, could change at any time. According to Maria da Conceição Tavares and Luiz Gonzaga Belluzzo (1986, pp.52-53), inventory prices and asset/liability values fluctuate during the production period, making it difficult for capitalists to calculate.[Producers'] supply prices are completely extra and exaggerated in an attempt to predict a potential net worth devaluation... As a result, the desired profit margin, rather than being a solid mark-up over prime costs, becomes an uncertain margin.  Basically, past inflation was completely ignored wh...

  The gov's tryna reduce domestic demand and flex on the market by raising interest rates and devaluing exchange rates, but it's causin' mad fiscal problems. First, like, as mentioned above, by 1983 most of the Brazilian external debt had been totally nationalised as foreign creditors and the domestic private sector were like seeking protection with the Brazilian government, you know? Yo, like, in addition, the maxi-devaluation in '83 caused, like, even more increase in public sector indebtedness. Secondly, like, by making the public sector the main external debtor, the adjustment created, like, a link between public external debt and public internal debt. Ya feel me?  To flex its debt, the BACEN had to cop the foreign exchange generated by the private sector.  OMG, like the adjustment was sooo strict, so the only way to pay off the debt was by flexing on that public internal debt, ya know? OMG, like check out Table 35 below! Public debt went up by a whopping 20% of GDP...

  OMG, when it comes to public enterprises, there are some major constraints that affect their role in economic policies. It's like, these constraints make their adjustment experience totally different from the private sector. Just sayin'. Yo, peep this: public enterprises started flexin' and be like, "nah, we ain't doin' that no more."  When things were hella chaotic financially after a bunch of plans flopped, companies went all out on restructuring by jacking up prices and investing in lit indexed financial assets. OMG, like, firms started using the daily indexed overnight interest rates to figure out prices so they could make enough money to cover their prime and financial costs. The economy was, like, always at risk of hyperinflation, so they had to be smart about it. OMG, Luiz Gonzaga Belluzzo and Júlio Gomes de Almeida (2002, p.182) describe this thing as the "financialisation of pricing," which is like when pricing is totally disconnected ...

    Chapters 2 also go over our shared theoretical viewpoint. When examining the link between government intervention and economic development, you know, it's all about the institutional and historical standpoint. From an institutionally and historically grounded standpoint, the lit interaction among people, institutions, and the evolving surroundings defines the attitude of the perspective. This is about how things evolve over time as well as how people and systems change, not about assigning everyone the ideal quantity of everything. Thorstein Veblen (1898, p.391) says, "The individual's economic life history is, like, a total journey of adapting means to ends that keep changing as we go, you know?" Both the person and their surroundings are, like, the result of everything that happened before, do you get? In this sense, what is true for the individual also holds true for the team they participate with?  Therefore, the main focus of this research is not so much on t...