1st Edition

Financial Stability and Growth Perspectives on financial regulation and new developmentalism

    360 Pages 33 B/W Illustrations
    by Routledge

    360 Pages 33 B/W Illustrations
    by Routledge

    The 2008 global financial crisis took the world by surprise, not least because politicians, businessmen and economists believed that they had learned crucial lessons from the Great Depression of the 1930s. As a direct result of deregulated financial markets, financial crises occurred in both developed and developing economies. However, this volume argues that in the most recent crisis developing countries suffered less, and that financial policy and regulation played a crucial part in this.

    The contributors to this volume explore the alternative development paradigm that has been gaining credence since the Asian crisis, known as new developmentalism. New developmentalism is embodied in the following principles: exchange rate responsibility or growth with domestic savings, fiscal responsibility, and the assignment of a strategic role for the state. New developmentalism is a set of values, ideas, institutions and economic policies through which, in the early 21st century, developing countries have sought to catch up with developed countries. This book examines the global financial crisis, the financial regulatory problem, with particular emphasis on Brazil, and the alternative policies that derive from new developmentalism.

    This volume will be of interest to scholars and policymakers working in the areas of globalization, financial regulation and development studies.

    Introduction Luiz Carlos Bresser-Pereira, Jan Kregel and Leonardo Burlamaqui  Part I: Lessons  1. Competitive Exchange Rates and Macroeconomic Theory Heiner Flassbeck  2. Capital Account Regulations: Role, effectiveness and the IMF’s institutional view José Antonio Ocampo and Bilge Erten  3. How to Manage a Sustainable and Stable Competitive Real Exchange Rate Roberto Frenkel  4. A Theoretical Framework for New Developmentalism Luiz Carlos Bresser-Pereira, José Luis Oreiro and Nelson Marconi  5. What We Learned from the Financial Crises of 2009 in Emerging Countries Robert Boyer  6. The New Developmentalism Luiz Carlos Bresser-Pereira 7. Europe’s Financial Crisis Thomas I. Palley  Part II: Re-regulating Finance  8. Lessons We Learned from the Global Financial Crisis: A Minskian interpretation of the causes, the Fed’s bailout, and the future L. Randall Wray  9. Regulating the Financial System from a Minskian Perspective Jan Kregel  10. Reregulating Finance after the Crisis C. P. Chandrasekhar  11. Exchange Rate Management Techniques Daniela Magalhães Prates  12. Financial Regulation and Governance Fernando de Holanda Barbosa  Part III: Brazil and the Crisis  13. Financial Regulation and the Brazilian Response to the 2008–2009 Financial Crisis Nelson Barbosa  14. Lessons from the 2008 Crisis Fernando J. Cardim de Carvalho and Francisco E. Pires de Souza  15. The Brazilian Experience in Managing the Interest–Exchange Rate Nexus Ricardo Carneiro and Pedro Rossi  16. Macroeconomic Constraints on the Growth of Brazil’s Economy José Luis Oreiro  17. Overcoming the ‘Impossible Trinity’ André Nassif  18. How to Evaluate Financial Regulation of Brazil Daniela Magalhães Prates  Part IV: Regulating Brazilian Finance  19. Economic Development and the Functionality of the Financial System in Brazil: A Keynesian approach Jennifer Hermann and Luiz Fernando de Paula  20. The Brazilian Experience of Prudential Regulation and its Impact on the 2008 Financial Crisis Rogério Sobreira  21. Brazil’s Response to the Financial Crisis: How did financial regulation and monetary policy influence the Brazilian economic recovery? Fernando Ferrari Filho  22. Financial Liberalization, Capital Account Regulation and Economic Policy in Brazil Luiz Fernando de Paula  23. Ten Theses on New Developmentalism


    Luiz Carlos Bresser-Pereira is Emeritus Professor at the Getulio Vargas Foundation, Brazil.

    Jan Kregel is Senior Scholar at the Levy Economics Institute of Bard College, USA.

    Leonardo Burlamaqui is Senior Program Officer at the Ford Foundation and Associate Professor of Economics at the Rio de Janeiro State University, Brazil.