Current economic policy and the missteps of monetarism

After years of stimulus to foreign indebtment, since 1976 the Brazilian government has been under great difficulty in closing the gaps in the balance of payments. New monetary policies have been issued since 1979, under the most orthodox economic theory guidance. In this paper, we discuss the difficulty in the orthodox policy to present results and lowering inflation in Brazil.

KEYWORDS:
monetary supply and demand; monetarist policy; inflation; balance of payments; debt crisis