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This paper argues that the new “Keynesian macroeconomics” presents some
weak points by ignoring the long-run effects of aggregate demand on the working of the
economic system. In order to introduce this1 reality, the paper shows that it is necessary to
define the relationships between real wage and unemployment in a manner that sheds light
on the crucial policies of employment and growth. This is done by introducing an investment
function which makes possible to determine different long run paths for the economy
according to the state of the “animal spirits” of the entrepreneurs.

JEL Classification: B22; E12.

The present paper discusses the nature and the conditions of stabilization plan
in democratic societies, criticizing the technocrats’ approach that reduces those plans to a
mere technical decision, this hiding their social consequences and implications in terms of
gains and losses. The inefficacy of orthodox and heterodox plans from in recent years said
to be due to their lack of clarity, politics and legitimacy. A stabilization program cannot
be left in the hands of market or cannot be resumed to a fiscal adjustment and monetary
restrictions, but must have income policies, introduced by the State and with the active participation
of social classes. The experience of the sectorial chambers in certain branches of
industrial activities harbours an insight towards a new mechanism of coordination of prices,
wages and public prices, that can slow down that inertial inflation and keep price increase
in Brazil under control.

JEL Classification: E31; P13.

The budget bill spells out the key functions of government. Once passed into
law, its implementation assures the provision of public services, the minimization of social
injustice, and the search for full employment with inflation under control. This article begins
by outlining the historical origins of national budgeting, stressing the evolution and systematization
of the process as nations develop. Brazil’s budget legislation is described starting
with the 1969 constitution. Moving on to the 1988 constitution (in force), the prolixity and
inconsistency of the chapter on public finance are criticized. The Brazilian budgetary process
is shown to be excessively fragmented, with three separated but overlapping pieces of legislation
– the Budget Guidelines Act (Lei de Diretriz Orçamentária), the Federal General Budget
and the Multiyear Plan. It is concluded that efficacy and transparency could be enhanced
by merging all three into a single act.

JEL Classification: H61.

Mathematics is a general and logical capital good for the construction of empirical
science. Pure empirical science (e.g. Theory of the Finn) is a logical but specific capital
good for the construction of applied empirical science. The latter (Corporate Strategy as a
corresponding example) is a dialectical and specific capital good for the improvement of the
art of science. The complementarity among these distinct spheres of knowledge is obvious. It
is however obscured by the economists’ Ricardian Vice. A study of Ansoffs’ work- he is the
chief protagonist of the Theory of Corporate Strategy – is conducted under this perspective.

JEL Classification: B41; A11.

A neoclassical growth model with failure in the labor market and positive externalities
accruing from rising capital intensity is presented. This model is used to support
the structuralist hypothesis that rising real wages may have a positive effect on GDP growth.
The model also challenges the orthodox conclusion that higher propensity to save necessarily
leads to higher rates of GDP growth.

JEL Classification: O41; O15.

The predictions for America’s future are a little shaky, but far from gloomy.
Although the USA will probably never regain the leadership it had following World War
II, possibly a tripartite role with Japan and West Germany may be feasible. However, the
American economy does appear to be making a comeback.

JEL Classification: F50; F54.

This paper discusses policies of privatisation towards the telecommunications
sector in Brazil. It raises some issues connected to the impact of these policies and presents
some characteristics of an econometric/computational model which can be used to analyse
such an impact. It argues that, in the light of the international experience, the adoption of
privatisation policies, in general, is necessary but not sufficient. If detailed statistical analyses
in respect to the industrial structure of the sectors involved are not properly carried out,
it is likely that privatisation could not bring about expected efficiency gains. This argument
is based on the recent contributions to the theory of natural monopolies of the modem
multi product industries.

JEL Classification: L33; L96.

The FHC Stabilization Plan consists of three stages, one of which is a monetary
reform where a new money-of-account is initially created as the basis for a new money
proper to be issued later to replace the cruzeiro real. The paper explores the differences
between indexation and monetary reform in the light of the distributive inconsistencies
generated by a high inflation regime. It is shown that the possibility of explosive solutions
to the coordination problem during the transition for new money is much increased by the
rules proposed by the government.

JEL Classification: E31.

O ministro da Fazenda Fernando Henrique Cardoso e sua equipe deram publicidade
no último dia 7 de dezembro a um novo plano de estabilização, claramente
baseado no Plano Arida, que dois dos membros da equipe – Pérsio Arida e André
Lara Resende – apresentaram originalmente em Washington, em novembro de 1984:
Lara Resende, A. e P. Arida (1984). “Inertial inflation and monetary reform”. In
Williamson, J., org. (1985). Inflation and Indexation: Argentina, Brazil and Israel.
Cambridge, Mass.: MIT Press. Publicado em português Arida, P., org. (1986). Inflação
zero: Brasil, Argentina, Israel. Rio de Janeiro: Paz e Terra. Publicamos a seguir a
íntegra da exposição de motivos do ministro.

Maria da Conceição Tavares é uma das fundadoras da Revista de Economia Política.
Sua contribuição para a compreensão da economia brasileira e latino-americana e
de sua inserção na economia mundial é fundamental. Desde julho de 1993 ela vem
publicando artigos aos domingos, na Folha de S. Paulo. Fizemos uma seleção desses
artigos, organizamos por temas, começando pelos assuntos internacionais, e os estamos
publicando como documento, a partir da convicção de que esses artigos precisam
ficar mais facilmente disponíveis para os pesquisadores da economia brasileira.