Central Bank of Brazil’s mission: Ensuring the stability of currency purchasing power and a sound, efficient, and ‘just’ financial system

Abstract

This study assesses the convenience and timeliness of making changes to the Central Bank of Brazil’s mission. We undertake this analysis from the normative and practical approaches and consider the perspective of inclusive development and the National Financial System’s role to be the main determinants of the selected strategic solution. The insertion of justice into the institutional mission of the Central Bank of Brazil not only signals a new normative proposal for public policies in this arena but also publicly compromises all agents, suggesting an agreement that engenders the expectations of reciprocity and increased legitimacy. The analysis is conducted through the political philosophy lens, based on the works of Rawls (1971, 2001) and Sen (1992, 2000, 2009). This approach focuses on neutralizing pre-existing views, as the purpose of this study is not to expand current results, but to question the governance structure of the National Financial System to select priorities and implement them. The advent of technology innovations emphasizes the opportunity for improvement, highlighting its risks and benefits. Therefore, the potential contribution of this study is to provide a policy-making alternative to promote publicly agreed objectives through governance structures.