The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s
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Data de Publicação: | 2021 |
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Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | Nova Economia (Online) |
Texto Completo: | https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091 |
Resumo: | Abstract At the end of 1928, the Brazilian economy began to experience an economic slowdown, driven by the retraction of domestic credit, due to the increase in bank hoarding combined with an already weak inflow of foreign capital. From the 1929 crisis onwards, the situation of domestic credit worsened substantially, due to the deteriorating terms of trade and, notably, to the capital flight. Given the operationality of the Gold Standard, the loss of reserve currency to which the Brazilian economy was subjected resulted in a retraction of the monetary base, with associated effects on the money supply (M1) and bank loans. This article analyzes the importance of restructuring the financial system at the time to the recovery of domestic credit and economic activity. The hypothesis held here is that this restructuring is a fundamental face of the early recovery process of the Brazilian economy, as it allowed the adoption of a countercyclical monetary policy and the expansion of credit by banking institutions. Keywords: Monetary policy; economic recovery, credit system; Great Depression (1929); money multiplier in the 1930s in Brazil. JEL Codes: N16, O14, E51 |
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The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930sA reestruturação do sistema creditício doméstico e a recuperação precoce da economia brasileira na década de 1930Abstract At the end of 1928, the Brazilian economy began to experience an economic slowdown, driven by the retraction of domestic credit, due to the increase in bank hoarding combined with an already weak inflow of foreign capital. From the 1929 crisis onwards, the situation of domestic credit worsened substantially, due to the deteriorating terms of trade and, notably, to the capital flight. Given the operationality of the Gold Standard, the loss of reserve currency to which the Brazilian economy was subjected resulted in a retraction of the monetary base, with associated effects on the money supply (M1) and bank loans. This article analyzes the importance of restructuring the financial system at the time to the recovery of domestic credit and economic activity. The hypothesis held here is that this restructuring is a fundamental face of the early recovery process of the Brazilian economy, as it allowed the adoption of a countercyclical monetary policy and the expansion of credit by banking institutions. Keywords: Monetary policy; economic recovery, credit system; Great Depression (1929); money multiplier in the 1930s in Brazil. JEL Codes: N16, O14, E51A fines de 1928, la economia brasileña comenzó a experimentar uma desaceleración económica, impulsada por la retracción del crédito interno, debido al enfriamiento de la entrada neta de divisas al país. Posteriormente, la crisis de 1929 empeoró los términos de intercambio y detuvo la afluencia de capital internacional. Dada la operatividad del Patrón Oro-Libra, la crisis externa tuvo um impacto en le sistema de crédito interno, causando uma retracción en la base monetária, en los medios de pago y en los préstamos de las instituciones bancarias. Este artículo analisa como el proceso de reestructuración del sistema financeiro, con énfasis en los cambios en la estrutura monetaria y bancaria de la época, ayudo en la recuperación del crédito y en el nível de actividad. La hipótesis es que este processo de reestructuración promovió uma recuperación económica, ya que separo la base monetaria del flujo neto de reservas internacionales, permitiendo la adopción de uma política monetaria anticíclica y, posteriormente, la extensión de los préstamos outorgados por los bancos comerciales.Resumo Ao final de 1928, a economia brasileira começou a experimentar desaceleração econômica, puxada pela retração do crédito doméstico, devido ao aumento do entesouramento dos bancos aliado a uma já fraca entrada de capitais externos. Com a crise de 1929 a situação do crédito doméstico piorou substantivamente, em razão da piora dos termos de troca e da célere fuga de capitais. Dada a operacionalidade do padrão ouro-libra, a perda de reservas à qual foi submetida a economia brasileira resultou em retração da base monetária, com efeitos associados sobre os meios de pagamento e os empréstimos bancários. O presente artigo analisa a importância da restruturação do sistema financeiro à época, tendo em vista seus efeitos sobre a recuperação do crédito doméstico e da atividade econômica. A hipótese é de que essa restruturação é uma face fundamental do processo de recuperação precoce da economia brasileira, ao permitir a adoção de uma política monetária anticíclica e a expansão do crédito pelas instituições bancárias. Palavras-chave: Política monetária; crédito bancário; recuperação econômica no Brasil pós-1930; Grande Depressão; multiplicador monetário nos anos de 1930 no Brasil. Códigos JEL: N16, O14, E51Departamento de Ciências Econômicas da UFMG2021-12-07info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttps://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091Nova Economia; Vol. 31 No. 2 (2021): Revista Nova Economia; 637-665Nova Economia; v. 31 n. 2 (2021): Revista Nova Economia; 637-6651980-53810103-6351reponame:Nova Economia (Online)instname:Universidade Federal de Minas Gerais (UFMG)instacron:UFMGporhttps://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091/3609Copyright (c) 2021 Fernando Augusto Mansor de Mattos, Márcio Alvarenga Jr.http://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessAlvarenga Jr., Márcio Mattos, Fernando Augusto Mansor de2021-12-07T21:57:06Zoai:ojs.pkp.sfu.ca:article/6091Revistahttps://revistas.face.ufmg.br/index.php/novaeconomiaPUBhttps://revistas.face.ufmg.br/index.php/novaeconomia/oai||ne@face.ufmg.br1980-53810103-6351opendoar:2021-12-07T21:57:06Nova Economia (Online) - Universidade Federal de Minas Gerais (UFMG)false |
dc.title.none.fl_str_mv |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s A reestruturação do sistema creditício doméstico e a recuperação precoce da economia brasileira na década de 1930 |
title |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
spellingShingle |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s Alvarenga Jr., Márcio |
title_short |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
title_full |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
title_fullStr |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
title_full_unstemmed |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
title_sort |
The restructuring of domestic credit system and the early recovery of the Brazilian economy in the 1930s |
author |
Alvarenga Jr., Márcio |
author_facet |
Alvarenga Jr., Márcio Mattos, Fernando Augusto Mansor de |
author_role |
author |
author2 |
Mattos, Fernando Augusto Mansor de |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Alvarenga Jr., Márcio Mattos, Fernando Augusto Mansor de |
description |
Abstract At the end of 1928, the Brazilian economy began to experience an economic slowdown, driven by the retraction of domestic credit, due to the increase in bank hoarding combined with an already weak inflow of foreign capital. From the 1929 crisis onwards, the situation of domestic credit worsened substantially, due to the deteriorating terms of trade and, notably, to the capital flight. Given the operationality of the Gold Standard, the loss of reserve currency to which the Brazilian economy was subjected resulted in a retraction of the monetary base, with associated effects on the money supply (M1) and bank loans. This article analyzes the importance of restructuring the financial system at the time to the recovery of domestic credit and economic activity. The hypothesis held here is that this restructuring is a fundamental face of the early recovery process of the Brazilian economy, as it allowed the adoption of a countercyclical monetary policy and the expansion of credit by banking institutions. Keywords: Monetary policy; economic recovery, credit system; Great Depression (1929); money multiplier in the 1930s in Brazil. JEL Codes: N16, O14, E51 |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-12-07 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091 |
url |
https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/6091/3609 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2021 Fernando Augusto Mansor de Mattos, Márcio Alvarenga Jr. http://creativecommons.org/licenses/by/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2021 Fernando Augusto Mansor de Mattos, Márcio Alvarenga Jr. http://creativecommons.org/licenses/by/4.0 |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Departamento de Ciências Econômicas da UFMG |
publisher.none.fl_str_mv |
Departamento de Ciências Econômicas da UFMG |
dc.source.none.fl_str_mv |
Nova Economia; Vol. 31 No. 2 (2021): Revista Nova Economia; 637-665 Nova Economia; v. 31 n. 2 (2021): Revista Nova Economia; 637-665 1980-5381 0103-6351 reponame:Nova Economia (Online) instname:Universidade Federal de Minas Gerais (UFMG) instacron:UFMG |
instname_str |
Universidade Federal de Minas Gerais (UFMG) |
instacron_str |
UFMG |
institution |
UFMG |
reponame_str |
Nova Economia (Online) |
collection |
Nova Economia (Online) |
repository.name.fl_str_mv |
Nova Economia (Online) - Universidade Federal de Minas Gerais (UFMG) |
repository.mail.fl_str_mv |
||ne@face.ufmg.br |
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1799711060318486528 |