Fernando Ferrari Filho
Luiz Fernando de Paula and Fernando Ferrari-Filho
Fernando Ferrari Filho and Pedro Cezar Dutra Fonseca
Academic discussion of Brazil's economic growth is currently framed in terms of export-led growth and wage-led growth, identified, respectively, with the new- developmentalism and the social-developmentalism approaches. This article presents a Keynesian–Institutionalist proposal to the Brazilian economy based on a wage-led regime without neglecting the long-run balance of payment current account requirement to ensure macroeconomic stability in the Brazilian economy.
Fernando Ferrari Filho and Fábio Henrique Bittes Terra
In general, mainstream economists define a situation of risk as one in which individuals take a decision based on the numerical probabilities of all the outcomes that are related to that decision. They go on to argue that the financial market is subject to the efficient market theory (EMT). On the other hand, Keynes and the Post-Keynesians reject the EMT because the future is characterized by fundamental uncertainty. According to them, because uncertainty exists, individuals have heterogeneous expectations and, as a result, their decisions involve either the accumulation of wealth or the possession of liquidity. Considering the difference between both theoretical approaches, this chapter has two objectives: the first is to show that, once ‘speculation is the activity of forecasting the psychology of the market’, in an entrepreneur economy, the organization of the financial market, given uncertainty, faces a severe trade-off between liquidity and speculation; and the second is to show the links between the financial market and the real economy.