Around the British Gold Standard: Portugal and Brazil, Two Satellites?

Abstract

Previous generations considered the elites of Portugal and Brazil as dupes of British free trade ideas. A closer look at the public finances of these countries reveals that, for all the free trade rhetoric, both countries proved to be amongst the most protectionist of their time. The elites conducted independent monetary policies, often flying in the face of orthodoxy. Finally, the elites of both countries took advantage of the opportunities provided by the international financial system.