Abstract
The aim of this paper is to analyze the “fiscal leniency thesis” of developmentalism presented, among others, by Franco (1996FRANCO, G. H. B. O desafio brasileiro: ensaios sobre desenvolvimento, globalização e moeda. Editora 34, 1996., 2004FRANCO, G. H. B. Auge e declínio do inflacionismo no Brasil. Rio de Janeiro: PUC. Departamento de Economia, 2004. (Texto para Discussão, n. 487)., 2005)FRANCO, G. H. B. Auge e declínio do inflacionismo no Brasil. In: GIAMBIAGI, G.; VILLELA, A.; CASTRO, L. B.; HERMANN, J. (Org.). Economia brasileira contemporânea (1945-2004). Rio de Janeiro: Campus Elsevier, 2005.. According to this thesis, "generations of developmentalists" proposed a development model in which the fiscal imbalances were not only acceptable but a crucial part of investment finance. The paper examines two generations of developmentalists: the original, from the academic contributions of its intellectual exponents, Roberto Simonsen, Roberto Campos and Celso Furtado, and the new generation formed by the contributions of new and social developmentalism. The literature review shows that there is no support for the theory of fiscal leniency. Original developmentalists suggested other mechanisms to finance investments, such as foreign loans or raising taxes. An additional result is that fiscal leniency is not part of the new and social developmentalism agenda, since they are committed to the fiscal balance.
Keywords:
Brazilian economic thought; Developmentalism; New and social developmentalism; Fiscal policy; Fiscal leniency