The Brazilian economy faces the deepest contraction in its economic activity of the last sixty years. The decline out put per capita for the period 1980/83 merest compa-rison with that of the period 1928/33. Using semi-official, conservative more sever than that of 1928/33. That current the pression was unleashed by growing difficulties in meeting obligations in foreign exchange is beyond doubt. This article argues that the present form of adjustment to the external crisis is inadequate. The burden of external debt was needlessly magnified by policies, which erroneously identify the interest rate as the crucial adjustment variable.

To accept that the postulate of the Economic Theory has validity in any country is to suppose the universality to the theory. The examination of the process of cost formation in the productive system and of the income sources shows that the imposition of new cost components in the economy brings movements for income accommodation, through acceleration of inflation up to a new equilibrium level. However, the new equili-brium rate will depend of three factors: the share of the new cost components in the GDP; the participation of the contractual income, like wages, in the GDP; and the periodicity of the contractual income correction. These factors are differents from country to country, refusing the validity of monetary theory supposition. This article shows that it is possible to conclude on “non universality” of the Economic Theory. At last, if is correct to admit that larger the share of contractual incomes in the GDP more stable will be the economy, then the income policy would be a strategic factor for the stabilization policy when the economy is subject to costs shocks.

External debt problems, like wars, are common occurrences in a broader historical perspective. They occur every thirty or fifty years, much in the same circumstances. And when they do occur they put at odds the bondholder and the debtor and leave fundamental imprints on history, though perhaps not, in any lasting fashion, on the memories of lenders. Hitler’s Germany or Latin America’s import substitution philosophy were the outgrowth of the last world debt crisis. Today Latin America is once again in a debt crisis and the debate puts in confrontation those who call for dramatic action, including even repudiation, and others who suggest the problem is minor and that it can be solved by time, adjustment and some typing-over finance — the muddling through strategy.

Today the indebtedment level is raised and the responsibility of this situation doesn’t fall back on International Monetary Fund or the banks. The indebtedment has origin in the functioning of accumulation regimes and in the economic policy followed inthe7O’s. The modification of world economic situation, the crossing of a indebtedment international economy with liquidity to a economy without liquidity are contributed so much to the debt become autonomous in relation to the productive system. The dolarização of economies and liabilities of public enterprises, the fall of real wages, the in-creasing impoverishment of new stratums of population, the aggravation of alimentary misery in the cities, constitute the consequences of this indebtedment.

In this paper we analyzed the growth process in the agriculture of Brazil’s CenterWest region during 1977/84 as compared with the one for the older South and Southeast regions. Emphasis was given to the causal factors of the crop composition iii the recent past as well as the economic variables likely to be important in the near future. Our conclusion indicated the difficulties faced by the production of domestic foods as compared to exportables and sugar cane in the Center-West region, mainly because of an unbalanced pattern of technical innovations and a very favorable exchange rate policy. A compensatory policy would then be required to achieve the objective of increased domestic food production.

The relationships between the land price and the financial system in Brazil has been analyzed under different points of view, but little or none significance is given to the interest rate as a factor that underlies the land market with the financial accumu-lation. The main purpose of this work is to analyse, in a historical perspective, how the land price expresses different stages of development of the financial activities and how the interest rate makes a bridge between land and capital markets.