ABSTRACT
This chapter focuses on the economic dimensions of the confluence of crises, emphasizing growth characteristics, aspects of industrialization, and the disequilibrium in the balance of payments. It describes the analysis up to early 1986, emphasizing the reasons why Brazil returned to growth in 1984 after a severe recession. The increasing integration of the Brazilian economy into the international economy, a process which had begun in the mid-1960s, produced a significant interdependence between domestic and international economic policies. Brazil's economic performance between 1974 and 1978 was notable for the deceleration of the rate of growth in comparison with earlier periods, and for variability in the rates of growth. Monetary policy of the United States changes, also took Brazil into complex negotiations with the International Monetary Fund, the principal international creditors, and with the United States government. Monetary authorities had to subtract the short-term liabilities associated with loans made in order to avoid a liquidity crisis from reserves.
