It has become commonplace to associate Latin American developmentalism with fiscal irresponsibility, and complacency with the inflationary process. The diffusion of the "inflationist thesis" presented by Franco (1996, 2005) and others, contributed significantly to this association. This paper investigates how the original developmentalist literature between 1930 and 1964 contributed to the formation of this association. In this regard, the study aims to answer two questions. First, did the exponents of developmentalism defend the use of inflationary mechanisms to finance industrial investment? Second, is it possible to argue that the developmentalist literature defended some leniency with inflation control? To answer these questions, the contributions of intellectual exponents of developmentalism in the period, particularly the works of Simonsen, Furtado, and Campos, are analyzed. The study concludes that there is no support in the original developmentalist literature for Franco's and others' "inflationist thesis".
Developmentalism; Inflationism; Brazilian economy; Brazil - History of economic thought
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