Banking behaviour and the Brazilian economy after the Real Plan: The post-Keynesian approch
This paper aims at analysing--from a Post Keynesian approach--the Brazilian bankingbehaviour in the current phase of the business cycle that is at the semi-stagnation state of the economy. According to the Post Keynesian approach, banks are economic agents that have liquidity preference determined s...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2003-12-01
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| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9818/9703 |
| Summary: | This paper aims at analysing--from a Post Keynesian approach--the Brazilian bankingbehaviour in the current phase of the business cycle that is at the semi-stagnation state of the economy. According to the Post Keynesian approach, banks are economic agents that have liquidity preference determined strongly by their expectations under uncertainty, managing their portfolio according to the tradeoff between liquidity and profitability. We argue that banking behaviour in Brazil has been determined by the specific institutional-macroeconomic context of the current phase of the Brazilian economy, with banks taking advantage of the high rates of interest and the conditions in which government has managed its internal debt. But at the same time bankingstrategies are determinant of the current phase since portfolio allocation has been dominated by a short-termist behaviour and high liquidity preference that have resulted in low credit supply and high banking spread. |
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| ISSN: | 2037-3635 2037-3643 |