Carmem Feijo

Inflation, growth, and distribution: The Brazilian economy after the post war

Abstract Following Marglin and Bhaduri (1990), the purpose of this paper is to investigate empirically the interaction between income distribution and growth of aggregate demand during the 1951–89 period in Brazil. Applying Hein and Vogel’s (2008) methodology we conclude that the Brazilian economy showed a profit-led demand regime. In a context of high inflation, high concentration of markets, and wage control, retained profits were the main source to finance new capital. In this sense, we found a large sensitivity of investment relative to the wage share, a result that is compatible with a consumption pattern based on high income, which supported the growth trend with low wages observed during the period.

Accumulation pattern of the Brazilian economy in the 1990s and 2000s

This paper investigates the dynamic relationships among income distribution, debt ratio and capital accumulation in the Brazilian economy in the 1990s and 2000s. One explanation for the relatively slow growth of the Brazilian economy is the relatively low rate of investment. The paper presents an econometric model, based on Nishi, to investigate the causes of instability in investment in the period. It concludes that the Brazilian economy since the economic opening presents a debt-burdened pattern of capital accumulation.