How to finance an income and employment guarantee program?

Authors

  • José Luis Oreiro Professor do Departamento de Economia da Universidade de Brasília
  • Kalinka Martins Silva Professora do Instituto Federal de Goiás, Campus Inhumas

Keywords:

Coronavírus crisis, Brazilian economy, program of emergency income

Abstract

The aim of this article is to demonstrate that with a drop in GDP and the possibility of increasing unemployment in Brazil in 2020, a program to guarantee income and employment is necessary. Faced with this challenge, the central question is how to finance this program without producing an explosive increase in public sector indebtedness. In this context, it is argued that this program can be financed by authorizing the Central Bank of Brazil, through a Proposed Constitutional Amendment, to direct financing of the National Treasury during the period of state of public calamity.

Author Biographies

José Luis Oreiro, Professor do Departamento de Economia da Universidade de Brasília

Professor Associado II do Departamento de Economia da Universidade de Brasília, Pesquisador Nível IB do CNPq, Pesquisador Associado do Centro de Estudos do Novo-Desenvolvimentismo da Fundação Getúlio Vargas de São Paulo e Líder do Grupo de Pesquisa Macroeconomia Estruturalista do Desenvolvimento. E-mail: joreiro@unb.br.

Kalinka Martins Silva, Professora do Instituto Federal de Goiás, Campus Inhumas

Professora do Instituto Federal de Goiás, Campus Inhumas e Pesquisadora do Grupo de Pesquisa Macroeconomia Estruturalista do Desenvolvimento. E-mail: kalinka.silva@ifg.edu.br.

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Published

2020-07-22

Issue

Vol. 1 No. 1 (2020): Janeiro / junho

Section

Artigos