Rezende on Brazilian Financial System – Hobart and William Smith Colleges \
The HWS Update

Rezende on Brazilian Financial System

The first phase of Assistant Professor of Economics Felipe Rezende’s research regarding the Brazilian financial system recently culminated with a presentation of his findings at “The MINDS/Ford Foundation conference on Banking, Financial Instability, and Financial Governance.” Rezende organized and coordinated the gathering, which was recently held in São Paulo, Brazil.

Rezende is coordinating the two-phase research project, “Financial Governance, Banking, and Financial Instability in Brazil: Present Questions and Future Prospects,” which is grounded in the theoretical framework of late American economist Hyman Minsky and explores the destabilizing effects of stability on financial structures and the need to redesign the regulatory structure to continually meet its objectives of financial stability and providing finance for development.  

The research effort investigates the structural changes in the Brazilian financial system and its regulatory framework, highlighting recent changes in the Brazilian financial system. The project is divided into two phases. The first phase, which has already been completed, focuses on reforms in Brazil’s financial system to promote the financing of the capital development of its economy without creating financial instability. The second phase of research will suggest policies for reforming Brazil’s financial architecture to “increase systemic stability,” as well as the ability to provide funding for development by financial institutions.

“The project’s goal is to provide both institutional reform proposals and policy advice, which would feed the ongoing policy dialogues and help policy makers and regulators to enrich their policy toolkits,” Rezende says. “I have always felt that my research should be applicable to a wider audience. Consequently, I have strived to communicate my research and to broaden the impact of my scholarship by promoting policy dialogues and seeking to influence the debate concerning socio-economic issues.”

The conference, which explored the results of the first phase of Rezende’s research, brought together leading economists and policymakers from across the world to discuss the structure of Brazil’s financial system to ensure stability for a growing and equitable economy. Brazil’s Minister of Planning and Budget, Dr. Nelson Barbosa, was the keynote speaker at the conference.

Rezende presented the project report he wrote on the first phase of his research at the conference. The report discusses the creation of new sources of financing and funding to promote real capital development in Brazil.

“I believe progress is visible not only due to the quality and repercussion of the events and interventions we produced or co-organized, but especially because MINDS has become a recognized ‘voice’ both in the domestic and in the international policy dialogues,” Rezende says. “The research project’s outputs are, naturally, the intellectual backbone of this increased visibility.”

Much of Rezende’s work has focused on monetary theory and policy macroeconomics, financial instability, and economic development. In January 2015, Rezende was quoted by Valor Economico, Brazil’s largest economic, finance and business newspaper, on the role of public banks played after the 2007-2008 global financial crisis. He is currently in the process of planning next year’s conference to discuss the findings of the second phase of research.

Rezende is a research fellow at the Multidisciplinary Institute on Development and Strategies (MINDS). His areas of teaching and research include macroeconomics, money and banking, monetary economics, and economic development. He has served as a faculty adviser for the “Beyond Borders” program on campus, and also led a group of students on a trip to Brazil in which they took an immersive Brazilian economy course. He holds an M.A. and a Ph.D. in economics with a specialization in monetary theory and financial macroeconomics from the University of Missouri-Kansas City.

In the second photo, Assistant Professor of Economics Felipe Rezende (back, third from left) gathers with fellow presenters at the “MINDS/Ford Foundation Conference on banking, Financial instability, and Financial Governance” in Brazil.

In the third photo, scholars join together in São Paulo, Brazil, for the “Financial Governance, Banking, and Financial Instability in Brazil: Present Questions and Future Prospects” organized and coordinated by Assistant Professor of Economics Felipe Rezende.