Recession, inflation and foreign debt

Abstract

When the economy is in recession, inflation accelerates in the Brazilian economy.
In order that prices go up during recession corporations, in an oligopolist economy, reduce
production and increase prices, instead of doing the contrary, as conventional economies
teach. To overcome recession, it is necessary that entrepreneurs take advantage of the new
opportunities for investment in new dynamic sectors of the economy. In Brazil, public utilities
are the sector that has more opportunities for growth. Private enterprises, national and
multinational, that have now idle capacity and excess savings will transfer these savings. To
public utilities as soon as institutional and financial arrangements make this possible.

JEL Classification: E32; D43.