Dívida Interna e inflação (1964-1 993): a lógica do financiamento do Estado Brasileiro diante da indexação

Abstract

The financing of the Brazilian State from 1964 to 1993 made extensive use of extra-budgetary resources for the implementation of development projects and for the balancing of public accounts. Meanwhile the public debt itself, rather than serving as a means of classic non-inflationary finance, acted as a vehicle for private capital formation thanks to the use of “quasi-currencies” (indexed government securities). The Keynesian notion of liquidity preference in favor of indexed government bonds defines this situation where major economic players speculated against the national currency during the decades of external shocks beginning in the 1970s. This speculation proved to be generally successful due to the structural weakness of the balance of payments. The State became in fact a partner of the financial sector dividing with it the increasing profit from the accelerating inflation.