Exchange rate policy, class conflict and economic development from Furtado’s view

Vol. 39 No. 1 (2019)

Jan-Mar / 2019
Published January 1, 2019
PDF-English
PDF-English

How to Cite

Barbosa, Lucio, Fabricio Missio, and Frederico Jayme Jr. 2019. “Exchange Rate Policy, Class Conflict and Economic Development from Furtado’s View”. Brazilian Journal of Political Economy 39 (1):23-38. https://doi.org/10.1590/0101-35172019-2885.

Exchange rate policy, class conflict and economic development from Furtado’s view

Lucio Barbosa
Fundação João Pinheiro – FJP, Belo Horizonte – MG, Brasil.
Fabricio Missio
Centro de Desenvolvimento e Planejamento Regional, Universidade Federal de Minas Gerais – CEDEPLAR/UFMG, Belo Horizonte – MG, Brasil.
Frederico Jayme Jr.
Centro de Desenvolvimento e Planejamento Regional, Universidade Federal de Minas Gerais – CEDEPLAR/UFMG, Belo Horizonte – MG, Brasil.
Brazilian Journal of Political Economy, Vol. 39 No. 1 (2019), Jan-Mar / 2019, Pages 23-38

Abstract

The aim of this paper is to analyze the contributions of Celso Furtado regarding the role of exchange rate policy and its relation to social conflict in the economic growth of peripheral economies. For that, we revisit Furtado’s analyses about the Venezuelan case and in The Economic Formation of Brazil. We highlight two main conclusions from such works: i) exchange rate appreciation due to a natural resources curse harms economic growth; ii) exchange rate policy is mainly a phenomenon associated with political economy, in which social conflict emerges. Hence, we claim that Furtado’s analyses are still significant today.

JEL Classification: B1; B5.


Keywords: Development exchange rate policy social conflict