International Financial Flows to Brazil Since the Late 1960s: An Analysis of Debt Expansion and Payments Problems

摘要

The document provides a detailed sequential analysis of the development of debt-creating financial flows to Brazil since the late 1960s. The purpose of the paper is to discuss the basic determinants and some of the main economic consequences of international financial flows to Brazil from the time of the so-called Brazilian economic miracle to the current debt crisis. An attempt is also made to draw implications with respect to debt management in the future and the solution of present debt-servicing problems. The paper concludes with a discussion of the rescheduling agreements between Brazil and its creditors. It criticizes these for failing to halt the continued net transfer of resources from debtors to creditors, which is inappropriate in terms of the long-run rationale for capital flows to developing countries.