Brazil and the Liquidity Trap

Are Legislative Adaptations Necessary?

  • Rodolfo Henrique Cerbaro UPF
  • André Da Silva Pereira UPF
  • Everton Bisinella UPF
Palavras-chave: armadilha de liquidez, princípio da legalidade, Brasil


With high-interest rates being the norm as this is written, Brazil has little reason to be worried about liquidity traps which have recently resurged in international economic literature. Studies intertwining the Brazilian scenario with them have been sparse. However, Brazil's legislative framework raises alarms: fiscal legislation with the principle of legality as applied in the Brazilian scenario seems to form a problematic situation.  The goal of this work is to alert one to the possible undesirable effects, caused by short-sighted legislation should a liquidity trap occur in Brazil, although it does not seem to be a concern in the short term. The methodology we use is descriptive and bibliographical, through a revision of the literature. We conclude that if the argument of a significant part of the literature is thought to follow, the country may find itself in a worrisome scenario.


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Biografia do Autor

Rodolfo Henrique Cerbaro, UPF
Contador e Administrador. Mestrando em Administração.
André Da Silva Pereira, UPF
Doutor em Economia (UFRGS)
Everton Bisinella, UPF
Estudante de Economia - UPF
Como Citar
Cerbaro, R., Da Silva Pereira, A., & Bisinella, E. (2020). Brazil and the Liquidity Trap. Revista Teoria E Evidência Econômica, 24(51), 367-382.