Controvérsias acerca da aplicação da Teoria Monetária Moderna em economias em desenvolvimento: o caso do Brasil (1995-2021)

Abstract

Recently the term Modern Monetary Theory, MMT, was used to demonstrate how sovereign governments do not face the same financial constraints as households and companies so that economic policymakers develop actions focused on social and environmental proposals. MMT upholds it can be applied to all nations that issue their own currency, regardless of their stage of development, as long as it is demanded by tax obligations impositions. Given that there is no consensus on this statement, MMT principles encountered acceptance resistance for emerging economies within heterodox macroeconomics, specifically among post-Keynesian literature defenders. The core of the controversy surrounding the MMT, in general terms, according to its critics, is to restrict its application to developed countries, specifically to those that issue international reserve currency. Concerning developing nations, critics claim that their applications are limited, or even null, especially for those that do not issue international reserve currency and operate with fixed exchange rate systems. This study seeks to examine the debate regarding the application of Modern Monetary Theory and its macroeconomic policy proposals for developing economies such as Brazil, through an analytical discussion of the theoretical controversy surrounding the theme, as well as an exploratory and descriptive analysis of the sectorial balance sheets, followed by a descriptive statistics for a set of relevant variables seeking to guide the grouding with the specificities of this economy. The main result of the study was, in summary, regarding the applicability or not of the MMT in Brazil, the following conclusions were obtained: i) from the accounting point of view, it not only applies but also deconstructs the mainstream narrative in relation to the public deficit in addition to to explain the transfers of wealth generated in the country; ii) From the perspective of the MMT it is to be applied in a country like Brazil, but there are a series of restrictions that are political (self-imposed) and not of an economic nature; and iii) The restrictions are much greater than those presented by the MMT when one takes into account that in developing countries, even with a sovereign currency, as is the case of Brazil, the credibility of the currency plays a crucial role because the country does not have a convertible currency. This dissertation sought to carry out quantitative research with exploratory and analytical objectives that resorted to the technical instruments of bibliographic, documentary, and survey research.