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The article intends to understand key features of the economic policy trajectory followed by the Workers’ Party governments in Brazil. The period was characterized by advances in social conditions, but the governments failed to advance key social reforms, reduce high interest rates or pursue a coherent industrial policy. The policies adopted led to a deep economic crisis, a key component of the subsequent political impasse. The article adopts a historical-institutionalist approach, establishing a dialogue with theories that deal with the role of international constraints, the institutionalization of the party system, economic ideas and the influence of interest groups. The main contribution is to provide an interpretation which, by integrating economic, political and institutional factors, significantly adds to the understanding of key economic policy decisions.

The political economy of the Workers’ Party governments in Brazil (2003-2014) - institutions, ideas and the main determinants of economic policy.