The paper analyses the Brazilian economy and its external vulnerability based on Minsky's theoretical approach. The continuous tendency increasing vulnerability and its cyclical movement, independent of the exchange rate regime, is observed. The paper points out that this tendency has been, in recent periods, mainly associated with the behaviour of the financial account, which compensated for the positive results of the country's balance of trade. All of these elements lead to the observation of an increased tendency towards increasing instability regarding the financial and real spheres of the Brazilian economy.
Liberalization; External vulnerability; Capital flows
