América latina, dívidas e dependência financeira do estado.

Abstract

The main characteristic of the financiai crises of the nineties was that they resulted in severe externai financiai constraints. Today, the "balancing" of the inflows and outflows of the balance of payments is done by adjusting interest rates, the key variable of economic policies. The hike in interest rates raises the cost of borrowrng considerably-weakcnrng the posruon of the states vrs-~-vis the Federal State -, and adds to the budget deficrt,which cannot be contained merely by reducing public expenditure. lt also leads to a reduction in the investment projects of firms. The inancrallogre underlying the functioning of a "casino economy" produces great instability in the economic activity,an acute social vulnerability and the impossibility under thes growth regime to obtarn any significant reduction in the widespread poveny.