<p>This paper presents the recent debate on modern monetary theory (MMT) and contributes to a critical view on its application to peripheral countries. MMT has been centered on both demystifying postulates of the ‘New Macroeconomic Consensus’ and offering an alternative theory to reach full employment with price stability. However, it has been criticized for assuming that constraints on domestic policies are generally self-imposed, not arising from international markets. Using the “international currency hierarchy” approach, this paper argues that peripheral countries, in the context of financial globalization, are not fully sovereign in determining its own macroeconomic policy. Our main argument is that currencies issued by peripheral countries do not fulfill money classical functions at the international level. Being hence illiquid at the international scenario, these peripheral currencies (and assets) are demanded by the international investors only in the quest for high returns; moreover, this demand depends on the “international liquidity preference” and the markets’ confidence in this country. Consequently, interest rates in peripheral countries tend to be higher and volatile. Additionally, the exchange rate is potentially under the pressure of this capital flows movements. Finally, monetary, fiscal and exchange policies in peripheral countries have constrains that are not considered by MMT.</p>

O Novo Banco de Desenvolvimento (NDB em inglês) ainda não recebeu a atenção que merece na comunidade de desenvolvimento. Por um lado, esta falta de atenção poderia ser parcialmente explicada por sua curta existência. Por outro lado, em seus primeiros cinco anos de operações, o banco se consolidou como uma fonte de financiamento do desenvolvimento no bloco, reivindicando originalidade do modelo de negócios tradicional dos bancos de desenvolvimento multilaterais. Nesse sentido, a lacuna de pesquisa sobre o banco aponta para uma falta de comunicação entre as reivindicações de originalidade do NDB e sua comunicação com a comunidade envolvida nos debates sobre desenvolvimento. Abordando o “novo no NDB” para consolidá-lo como um membro pleno da comunidade, este artigo analisa as primeiras operações do banco para entender as possibilidades do NDB de se posicionar como uma instituição orientada à missão de financiar a transição ecológica nos países BRICS por meio de parcerias com atores locais e instituições comprometidas com a noção de valor público. Para entender estas oportunidades, este artigo lança luz sobre cinco projetos selecionados do NDB e seu envolvimento com as agendas locais de desenvolvimento sustentável. Estudados em conjunto, os estudos de caso fornecem lições importantes sobre a abordagem do banco para alcançar sua originalidade, mas não pretendem avaliar o conjunto de seus primeiros cinco anos de operações – o que deve ser abordado por mais pesquisas. O artigo conclui sugerindo um roteiro de missão para que o banco considere em sua estratégia corporativa. Isto implica uma mudança de perspectiva a partir de seu atual foco restrito no investimento em infraestrutura sustentável, em direção a parcerias com atores locais da comunidade de desenvolvimento do BRICS. Para isso, é necessário um forte compromisso compartilhado com as noções de sustentabilidade e de valor público ao conectar as operações do banco e os desafios específicos de cada país para a transição ecológica.

Aiming at analysing the constraints to economic development, the article takes as reference the classic Economic Commission for Latin America and the Caribbean (ECLAC) approach to centre–periphery relations and seeks to update it from two points of view: adding the new historical context of the financialisation of capitalism and highlighting the new format and operation of the International Monetary System (IMS). The article’s objective is thus analysing the effects of financialisation on the IMS, emphasising the hierarchies of this system and its consequences for the economic dynamic of centre and peripheral countries. The main hypothesis is that financialisation has produced changes in cross-border capital flows, but also – and chiefly – in the ‘nature’ of the key-currency of the IMS. As a consequence, the exorbitant privilege of the reserve currency issuing country reaches a paroxysm, while peripheral countries are victims of a ‘compulsory duty’.

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This article aims to analyze the economic integration of the BRICS countries through foreign direct investments (FDI) since the first summit of the group in 2009. The investigation shows that this integration is very asymmetric due to the preponderance of Chinese investments in other BRICS countries. Hence, the paper sets an associated objective, focusing on the evaluation of diverse patterns of internationalization of Chinese capital and its impact on the investments within the bloc. In line with these goals, the paper’s methodology involves several progressive steps. First of all, we are developing a data analysis of FDI in BRICS. Given the absolute dominance of China’s investments within the bloc, we are shifting the focus to these Chinese outward foreign direct investments (OFDI). In order to cope with this requirement, we are promoting qualitative and quantitative analysis. The qualitative analysis consists in the perception of heterogenous motivations that induce the internationalization of Chinese capital through examining the strategies of three groups of economic agents in China: (1) state-owned enterprises (SOE) operating in traditional sectors, (2) big companies preponderantly oriented on the domestic market, and (3) technology-based companies. The quantitative analysis lies in the scrutiny of the available data on Chinese investments in other BRICS countries. As a result, the main contribution of this article lies in the characterization of heterogeneous strategies of the internationalization of Chinese capital and their analysis within the framework of the asymmetric productive integration within BRICS.