REPORT BrazilGlobalization and TradeLatin America and the CaribbeanWorld

Macroeconomic Policy, Growth and Income Distribution in the Brazilian Economy in the 2000s

June 02, 2011

Franklin Serrano

Ricardo Summa

June 2011, Franklin Serrano and Ricardo Summa

The Brazilian economy grew by 4.2 percent annually from 2004-2010, more than double its annual growth from 1999-2003 or indeed its growth rate over the prior quarter century. This growth was accompanied by a significant reduction in poverty and extreme poverty, especially after 2005, as well as reduced inequality. This paper looks at the combination of external changes and changes in macroeconomic policy that contributed to these results.

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