• Brazil’s Economic Policy: Does Not Compute

    The Brazilian government bets that the domestic market will save the Brazilian economy: that the wage increase above productivity, apart from reducing inequality, will create demand for the Brazilian industry and will offset the overvalued exchange rate.  In other words, the same recipe that produced good results under the Lula administration, it hopes, could be […]

  • From Old to New Developmentalism in Latin America

    Excerpt: The paper is divided into seven short sections.  In the first, I discuss the need for a national development strategy to compete in the present stage of capitalism; in the second, I discuss old or national developmentalism, its relation to the Latin American structuralist school of thought, and its success in promoting economic growth […]

  • Nationalism, Liberalism, and Capitalism

    The Economist (July 15) published an editorial on Egypt and Saudi Arabia (two dictatorial countries allied with the United States in the Middle East) expressing hope that they would become democratic in the future.  What is surprising, however, is that in the same issue the magazine did a favorable review of a book by Stephen […]

  • Goodbye to Turkey or Goodbye to Good versus Evil?

    The West is worried about Turkey.  Its spokespeople fear that the West might have “lost” Turkey since its Prime Minister, Recep Erdoğan, associated himself with President Lula, proposed to act as intermediary between the West and Iran, and, later, reacted with determination against Israel’s violent raid on a boat sailing under the Turkish flag and […]

  • Greek Debt: Default or Restructuring?

    After Greece, what?  Hungary?  Or a low growth prospect for Europe?  Or disappointment with American recovery?  Or, still Greece?  The international financial markets are always nervous and unstable — sometimes sad, sometimes euphoric, but always in a dialectic of rationality and irrationality.  Despite our more “scientific” air, we economists make the same mistakes.  So, perplexed […]

  • Asian Countries and the Dutch Disease

    The Dutch disease does not derive from abundant and cheap natural resources, but from the combination of low wages and high wage dispersion. The American government was about to declare China an exchange rate-manipulator country, but, since bilateral negotiations continue, the American Treasury decided to postpone the decision, probably because it expects China to yield […]