Thiago Celestino Favaretto Martinez

The main reason of this work is to examine the 2nd National Development Plan and to analyze the effect of this plan on the decade of 1980. After the high increasing taxes during more than one decade, the Brazilian economy stopped on the following decade. One hypothesis considered that the same measures which allowed Brazil to continue to grow after the first oil shock were the ones that made the country stop its growth in the next decade. The contracted indebtedness of the floating tax of interests enters in "an explosive" trajectory after the shock of the interests in 1979. The decade of 80 initiated with strong fiscal disequilibrium, external disequilibrium and inflation out of control. It is evident that the authors of the economic plan were aware of the oil shock, nevertheless their intention was to make the country continue its trajectory of high economic growth and to keep the Balance of Payments under control without increasing the inflation. One conclusion is that the floating tax of interests contracted was imposed by the credit banks. Another conclusion is that some drastic measures to contain the oil consumption after the first shock were not adopted mainly by pressures, over all from the car industry that feared for reduction of production, and at the same time the government position was to keep the high growth of the economy.