Luiz Carlos Bresser-Pereira, Luiz Fernando de Paula e Miguel Bruno
Texto para Discussão IE/UFRJ, n. 22, outubro 2019.
In this paper, we retake the hypothesis of the existence of a pro-conservative convention of the monetary policy in Brazil, formulated initially by Bresser-Pereira and Nakano (2002) and Erber (2011), adding in particular two sub-hypotheses to it: (i) the prevalence of high real interest rates in Brazil for decades has led to the formation of a coalition of rentier-financier interests in the maintenance of high interest rates, since these favor the valuation of their financial wealth that results in a "financialization by the gains of interest"; (ii) existence of a "double-handed" contagion effect of public debt between the banking reserves market and the public securities market. For this purpose, the paper takes as its starting point the conception of Keynes that the interest rate is an eminently conventional phenomenon.
