The economic policy and the external constraints to growth in present-day Brazilian economy

Abstract

ABSTRACT The article aims to discuss the general guidelines of economic policy, the external constraints and the prospects for the Brazilian economic growth. Based on external solvency and external liquidity indicators, it seeks to demonstrate the change in external insertion of the Brazilian economy that enabled Lula's government to adopt a more expansionary stance in macroeconomic policy. The range for this stance is narrowed, however, by the working of inflation-targeting system. The challenge for Rousseff's new government is to find a way to curb the upward trend of the nominal exchange rate without jeopardizing price stability, in order to maintain or accelerate economic growth. Key words: economic policy; external insertion; economic growth. Artigo recebido em 10 abr. 2012