Some Aspects of the 1982-83 Brazilian Payments Crisis

Carlos F. Diaz-Alejandro

CFD

Carlos F. Diaz-Alejandro

Discussants: Richard N. Cooper and

RNC

Richard N. Cooper

Rudiger Dornbusch

RD

Rudiger Dornbusch

BRAZIL’S post-1973 economic performance was regarded with admiration in 1979, both in Brazil and elsewhere. Although real GNP growth had declined from the spectacular levels of 1971-73 (around 12 percent a year), it registered more than 8 percent during 1974-76 and nearly 6 percent during 1977-79. The sketchy and somewhat mysterious Brazilian national accounts even registered a post-1973 increase in the rate of fixed capital formation: from 22.9 percent of GNP during 1971-73, it rose to 26.1 percent during 1974-76, declining to 24.9 percent during 1977-79. The share of gross domestic saving in GNP rose during 1974-76, relative to the previous three-year period, although it fell below the 1971-73 level during 1977-79.