Stability and growth tug-of-war: the macroeconomic roles of Banco do Brasil, 1964–1985

Abstract Banco do Brasil played a central role in Brazil’s macroeconomic management during the Military Regime (1964–1985), a period marked by ambitious development strategies and heightened monetary instability. While previous research has emphasized its involvement with the Treasury and balance-of-payments financing, the broader scope of its functions has remained underexplored. Drawing on newly digitized balance-sheet data, this article reconstructs and classifies Banco do Brasil’s operations across its main areas of activity. It shows that Banco do Brasil acted as a multipurpose policymaking institution, mediating between competing objectives of growth, stabilization, and external adjustment. By tracing changes over time, the article highlights how Banco do Brasil’s functions evolved with shifting policy priorities across military governments, revealing a more complex and adaptive role in shaping Brazil’s macroeconomic outputs.