Financialization, credit rating agencies, and “policy space”: The Brazilian experience

This paper analyzes the restrictions imposed by financialization on domesticpolicy space, especially in emerging economies, in light of the actions of credit rating agencies.The working hypothesis is that these agencies, in their interaction with governments, act toconstrain the policy space from th...

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Detalles Bibliográficos
Autores: Machado, Pedro Lange Netto, Paula, Luiz Fernando de
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2023
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:inglés
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/2433
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2433
Access Level:acceso abierto
Palabra clave:Financialization
policy space
credit rating agencies
Brazil
Financeirização
“policy space”
agências de rating
Brasil
Descripción
Sumario:This paper analyzes the restrictions imposed by financialization on domesticpolicy space, especially in emerging economies, in light of the actions of credit rating agencies.The working hypothesis is that these agencies, in their interaction with governments, act toconstrain the policy space from their position in the international financial system. Thereby,they operate in favor of the financial markets’ agenda through the issuance of sovereignratings and at the discursive level. The methodology draws on the case study of Brazil, basedon sovereign ratings and reports issued by S&P Global, Moody’s, and Fitch Ratings, which shows that such agencies have a vast repertoire to promote the orthodox neoliberal agendain the national political and economic process. JEL Classification: F62; F65; Y80.