Werneck, Rogério L. F.2017-08-172017-08-172009https://hdl.handle.net/10986/27928This paper keeps an eye on the big picture and follows the long‐lived virtuous circle that, beginning in the mid‐1990s, led to the very successful setting up of a modern macroeconomic policy framework in Brazil, after a decade‐long effort involving four presidential terms. It is an eventful and far from linear history that calls attention to the role of leadership and the complex learning processes that may be involved in the improvement of the quality of economic policy.en-USCC BY 3.0 IGOADJUSTMENT PROGRAMANNUAL GROWTHBALANCE OF PAYMENTSBANKING SYSTEMBASIS POINTSBONDBOND INDEXBUDGET CONSTRAINTBUDGET CONSTRAINTSBUSINESS CONFIDENCECENTRAL BANKCONSOLIDATIONCONSUMER PRICE INFLATIONCONSUMERSCORRUPTIONCOUNTRY RISKCRAWLING PEGCREDIBILITYCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBT DEFAULTDEMOCRACYDEPRECIATIONDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT BANKDISBURSEMENTDISBURSEMENTSECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC RISKECONOMIC SITUATIONEMERGING MARKETEMERGING MARKET ECONOMYEMERGING MARKETSEXCHANGE RATE POLICYEXPENDITUREEXPENDITURESEXPORT DIVERSIFICATIONEXPORTSEXTERNAL DEBTEXTERNAL FINANCINGEXTERNAL SHOCKSFEDERAL BUDGETFEDERAL GOVERNMENTFINANCIAL ASSETSFINANCIAL MARKETSFISCAL ADJUSTMENTFISCAL AUSTERITYFISCAL POLICIESFISCAL POLICYFISCAL STABILITYFOREIGN CAPITALFOREIGN EXCHANGEFOREIGN EXCHANGE POLICYGDPGLOBAL ECONOMYGROWTH RATEHIGH INFLATIONIMPLICIT CONTRACTIMPORTIMPORT TARIFFSINDEXATIONINFLATIONINFLATION RATEINFLATION TARGETINGINITIATIVEINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL RESERVESLEADERSHIPLEGAL FRAMEWORKLIQUIDITYLOANLOAN AGREEMENTLOCAL GOVERNMENTSLOW-INCOME COUNTRIESMACROECONOMIC ENVIRONMENTMACROECONOMIC POLICYMACROECONOMICSMARKET POWERMILITARY REGIMEMINISTERMINISTERSMONETARY POLICYNATURAL RESOURCESNET DEBTNOMINAL EXCHANGE RATEPOLICEPOLITICAL ECONOMYPOLITICAL ECONOMY OF REFORMPOLITICAL RISKPOLITICAL STRIFEPOLITICAL UNCERTAINTIESPOLITICAL UNCERTAINTYPOLITICIANPOLITICIANSPOVERTY REDUCTIONPRIVATIZATIONPUBLIC DEBTPUBLIC EXPENDITURESPUBLIC SECTORREAL DEVALUATIONREAL EXCHANGE RATEREAL EXCHANGE RATESRENEGOTIATIONRENEGOTIATIONSRESERVESRETURNRISK PREMIUMSCANDALSMALL BUSINESSESSPECULATIVE ATTACKSTABILIZATION PLANSTATE BANKSTATE BANKSSTRUCTURAL ADJUSTMENTSURPLUSTARIFF REDUCTIONTAXTAX HIKESTRADE ACCOUNTSTRADE BALANCETRADE SURPLUSVOTERSWORLD DEMANDWORLD ECONOMYWorking PaperWorld Bank10.1596/27928