The 'Economic Miracle' Saw Record GDP Growth but Paved the Way for the Lost Decade

[Judi Lynn]

A period of strong growth and industrialization in the 1970s came at the expense of indebtedness and hyperinflation that arrived at the end of the regime

Jun.29.2020 3:25PM

Fernando Canzian
SÃO PAULO
The military also promoted exports and implemented measures to stimulate financial investments and savings, such as monetary correction, to protect applications from inflationary corrosion.

Another innovation was the creation of the Central Bank, which was tasked with controlling the money supply in the economy, previously the role of Banco do Brasil.

This phase would also provide a substantial increase in credit to families, which would end up supporting consumption and investments in the private sector, stimulating the arrival of companies from abroad and the creation of new companies in the areas of home appliances and automobiles.

Growth during this first half of the military regime increased job supply, which helped to expand domestic consumption.

More:
https://www1.folha.uol.com.br/internacional/en/brazil/2020/06/the-economic-miracle-saw-record-gdp-growth-but-paved-the-way-for-the-lost-decade.shtml