Brazilian countercyclical economic policies as a response to the Great Recession: a critical analysis and an alternative proposal to ensure macroeconomic stability

Abstract

This article analyzes Brazilian macroeconomic policy and its economic performance as a response to the Great Recession. First, we present a theoretical analysis of Keynesian economic policies to coordinate and stabilize the dynamic of monetary economies. Second, we analyze Brazilian macroeconomic policy efforts to overcome the effects of the Great Recession, and we show the relationship between this policy and the main economic indicators, such as gross domestic product and inflation. In doing so, we argue that, although the Brazilian economic policy response to the global financial crisis and Great Recession seem to incorporate Keynesian economic policies, it is not possible to argue that the Brazilian economy be considered a Keynesian paradigm. Finally, in light of the Keynesian theory, we present an economic strategy to sustain the dynamism of the Brazilian economy.

Keywords:

• Great Recession
• Brazilian economy
• Keynesian theory