Abstract
ABSTRACT This text reread the contribution of Prebisch in the era of deregulated financial flows, interpreted in a more general context of demand-driven growth, with the incorporation of capital flows as significant components of external dynamics. Given that the largest economies in Latin America cannot grow driven solely by exports, then the growth of these economies will present a trend towards the trade and current account deficit that will require a net influx of capital. Under certain conditions, this dynamic can be sustainable or not, with various implications for growth. The long-term balance between imports and exports will remain crucial, as in the original Prebisch vision. However, contrary to conventional views, the effects of capital flows can be very important for a strategy to promote structural change.
Highlights
This text is a preliminary attempt to reread some aspects of Prebisch’s thinking in the era of deregulated financial flows under the hegemony of the flexible dollar pattern as key elements that define the current external position of the periphery.In this context, the focus will be placed on identifying some of the fundamental elements of Prebisch in its initial phase around the 1940s and its development in the 1949 Manifesto regarding the current relationship between financial flows and specialization in primary commodities
The focus will be placed on identifying some of the fundamental elements of Prebisch in its initial phase around the 1940s and its development in the 1949 Manifesto regarding the current relationship between financial flows and specialization in primary commodities
A discussion will be held on the role of external capitals and the exchange rate, with the main postulates held by Prebisch in the Manisfesto (1949) and in some subsequent work as a backdrop
Summary
This text is a preliminary attempt to reread some aspects of Prebisch’s thinking in the era of deregulated financial flows under the hegemony of the flexible dollar pattern as key elements that define the current external position of the periphery. In this context, the focus will be placed on identifying some of the fundamental elements of Prebisch in its initial phase around the 1940s and its development in the 1949 Manifesto regarding the current relationship between financial flows and specialization in primary commodities.
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