Financial globalization and the Brazilian public debt: the indebtedness in the 1970’s and 1990’s

Abstract

This paper aims, through a literature review, to relate the internationalizing of the finances with both high indebting processes which Brazil passed on the 1970s and 1990s. It was found relation between the Eurodollars and petrodollars with the indebting of the 1970s, that was mostly foreign. In relation to the 1990s, the high interest rate intended to attract international capitals was responsible for the process of indebting, this time internal. It’s possible to say that both indebting processes are narrowly related to the changes in the international economy and the first indebtedness enabled the second. The difficulties resulting from the debt of the 70s were progressively setting Brazil in submissive position in the international framework in relation to its economic policies forcing it to accept an unprecedented opening, whose cost was the second debt.