IMPACTS OF GOVERNMENT ECONOMIC ACTION PROGRAM (1964-1967) IN THE MANUFACTURING INDUSTRY

Abstract

Between 1964 and 1967, during the first military government, the Government Economic Action Program (Paeg) was implemented, whose main objectives were
combating high inflation rates and the balance of payments crisis. Despite these priorities, there was also, by the part of the economic authorities, the concern with economic
growth. The growth target of 6% per year was not achieved, Brazil grew by 4,2% on average in the period. Such average, however, like all average, hides the diversity of performance across various sectors. Among the sectors most affected by the restrictive policies
adopted in this interregnum stands out the manufacturing industry, whose performance
was the least exciting and the most erratic. The objective of this article is to examine the
effects of Paeg’s fiscal, monetary and credit policy on the general performance of the Brazilian economy, and more specifically on the manufacturing industry and its main sectors.