"This paper attempted to measure the evolution of income distribution and its determinants during the period of economic reforms. [It's] divided in two parts: ... [first] long-run relations between reforms and income distribution were explored ... [secondly] explored relations between movements of distributive variables, on the one hand, and economic reforms and macroeconomic fluctuations, on the other"--p.5

The emphasis of this book is on the structural aspects of the Brazilian economy, although analyses of economic performance are also covered. A central theme is that growth with social development requires structural reforms, such as the reorganisation of public finances and other matters.

Published in 1999. The liberalization process in Latin America during the 1990s resulted in the increase and diversification of trade in the region. Brazil, as a major player, strengthened its insertion into the world economy through the adoption of strategies for opening up markets and of new production technologies; complemented more recently by the creation of a broadly based stabilization plan. In this context, issues related to structural changes in the economy, such as those involving the complexity of new international trading agreements and their impact on the Brazilian economy, warrant special attention. The results of this study suggest that the interplay of market forces in the Brazilian economy favour the more developed region of the country.

Discusses the design and implementation of public policies to promote economic growth with fair income distribution. Considers aspects of health, housing, social protection, educational needs, and related means of reducing inequality.

Over the last few decades, Brazil has experienced relatively weak economic growth due to stagnant productivity. To boost productivity, Brazil should embark on an ambitious structural reform process. In doing so, it is crucial that authorities select a few reform priorities to avoid dispersing political capital on an overly broad reform agenda. The paper aims to identify Brazil’s reform priorities in two steps. First, it estimates the impact that different reforms have on Brazil’s productivity. Second, it analyzes survey data to assess the extent of public support for reforms. The results show that banking sector reforms would generate the largest productivity gains and have the highest level of public support. Moreover, they would also be relatively easy to legislate and generate significant fiscal savings.

This paper assesses the importance of financial market developments for the business cycle in Brazil. The results underscore the importance of macro-financial linkages and highlight risks to the recovery going forward. Although some of the rise in credit growth in Brazil can be attributed to financial deepening and rising income levels, it may have implications for economic activity going forward. Cross-country evidence suggests that periods of easy financial conditions can amplify economic fluctuations and possibly lead to adverse economic outcomes. To explore the nexus between the financial cycle and business cycle, cycles are estimated using a variety of commonly-used statistical methods and with a small, semi-structural model of the Brazilian economy. An advantage of using the model-based approach is that financial and business cycles can be jointly estimated, allowing information from all key economic relationships to be used in a consistent way. Financial sector developments are found to be an important source of macroeconomic fluctuations. Financial accelerator models highlight the role of credit and asset prices in shaping the business cycle.

Brazil is the world's sixth-largest economy, and for the first three-quarters of the twentieth century was one of the fastest-growing countries in the world. While the country underwent two decades of unrelenting decline from 1975 to 1994, the economy has rebounded dramatically. How did this nation become an emerging power? Brazil in Transition looks at the factors behind why this particular country has successfully progressed up the economic development ladder. The authors examine the roles of beliefs, leadership, and institutions in the elusive, critical transition to sustainable development. Analyzing the last fifty years of Brazil's history, the authors explain how the nation's beliefs, centered on social inclusion yet bound by orthodox economic policies, led to institutions that altered economic, political, and social outcomes. Brazil's growth and inflation became less variable, the rule of law strengthened, politics became more open and competitive, and poverty and inequality declined. While these changes have led to a remarkable economic transformation, there have also been economic distortions and inefficiencies that the authors argue are part of the development process. Brazil in Transition demonstrates how a dynamic nation seized windows of opportunity to become a more equal, prosperous, and rules-based society.