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Brazil, Medium-term Policy Analysis
註釋This paper develops an analytical framework to examine the Brazilian economy. A macro economic projection model is developed based on a consistency framework for 1980. After 1980, the economy began to show many serious weaknesses, unemployment rose rapidly, the current account deteriorated, & the external debt rose to over US$90 billion by 1983. The projections suggest that even relatively strong growth rates of around 6% per annum, although large enough to support the absorption of increases in the labor force, will not be sufficient to reduce the pool of unemployed that has accumulated during the recession. The recent performance in the merchandise balance of Brazil has been quite strong but it is essential to maintain this highly favourable balance if the current account, & the debt servicing required is to remain within acceptable limits. This implies that import expansion should be strongly conditioned by a favourable export performance. The multi-sectoral nature of the model provides considerable insight into analyzing which sectors may be most appropriate for various initiatives & where one may expect unfavourable consequences. The paper indicates which policy instruments may be appropriate for various goals but the choice & blend will in the end be a political decision.