Carlos Langoni Wiki
Carlos Langoni Biography
Who was Carlos Langoni?
Carlos Langoni, who was praised for bringing stability to Latin America’s largest economy, passed away as a result of the coronavirus, local media reported. He studied at the Colégio Nova Friburgo, a pioneering project of the Getúlio Vargas Foundation (FGV), with a scholarship funded by the City Council and Luís Simões Lopes, then president of the Foundation. He joined the undergraduate course at the Faculdade Nacional de Economia, in Praia Vermelha, Rio de Janeiro, where Octavio Gouvêa de Bulhões, Isaac Kerstenetzky and Julian Chacel taught. He graduated in 1966.
The following year, he took the economic planning and programming course organized by Og Leme at the Training Center for Social Economic Development (Cendec) of the Ministry of Planning. Affonso Celso Pastore was one of the teachers. The course had an academic orientation close to that of the University of Chicago. Leme reached an agreement with the Ford Foundation to send some students to complete their studies in Chicago. Langoni received a scholarship and became the first Brazilian to obtain a doctorate. in economics from the University of Chicago in 1970.
Upon his return to Brazil, Langoni was invited by Affonso Celso Pastore and Antônio Carlos Rocca to work at the Institute of Economic Research of the University of São Paulo (Fipe / USP), where he structured the postgraduate program and the Journal of Economic Studies.
Carlos Langoni Age
Carlos Langoni was 76 years old.
His doctoral thesis (1970) “The sources of Brazilian economic growth”, published as a book in 1974 (The causes of economic growth in Brazil), initiated an important debate on the relationship between education, economic growth and, later, the distribution of income in Brazil with another book (Distribution of income and economic development of Brazil, 1973).
Influenced by the work of Theodore Schultz, his Chicago professor and thesis advisor, Langoni calculated the return on investment in education (human capital), developing an estimate from data on the costs of education at the primary and secondary levels. . and tertiary. Langoni expected to find a very important demand for qualified labor due to the growth process of the Brazilian industry. His work found that the social profitability of education in Brazil averaged around 25%, while in physical capital it was 12%.
Two other conclusions were that the salary difference between those who had completed primary school and those who were illiterate was about 32% in 1969. And the complete primary school, compared to the complete secondary school, yielded a performance of almost the same. twenty%. Langoni’s main arguments developed during his doctorate. period in Chicago where education is essential for economic growth and so is it.
In August 1979, Langoni assumed, at the invitation of Ernane Galvêas, the Directorate of the Banking Area of the Central Bank. During this period, he created the Special Settlement and Custody System (Selic), one of the first systems in the world to ensure the virtual settlement of transactions involving government securities. Virtual government bonds were created, with absolute security, and their settlement against bank reserves, ending a source of uncertainty and risks (zero settlement risk). From there arose the Selic rate, formed in this process of liquidation of securities and bank reserves.
With the appointment of Galvêas to the Ministry of Finance in January 1980, Langoni assumed the presidency of the Central Bank of Brazil, remaining in office until September 5, 1983. At age 35, he was the institution’s youngest president in the world. the world. the history. As president of the Central Bank, he became a member of the National Monetary Council and the National Council for Foreign Trade (Concex) and also a representative of Brazil, as alternate governor, in the International Monetary Fund (IMF).
Due to internal disagreements, he resigned as president of the Central Bank, being replaced by Affonso Celso Pastore.
Cause of death
Former Brazilian central bank president Carlos Langoni, who was praised for bringing greater stability to Latin America’s largest economy, has died of complications from the coronavirus, local media reported.
Langoni died Sunday in a hospital in Rio de Janeiro, where he had been treated since December. He was 76 years old. The University of Chicago-trained economist headed Brazil’s central bank from 1980 to 1983 and recently served as director of Fundacao Getulio Vargas, a university in Rio.
Langoni was also known for his closeness to the current Minister of Economy, Paulo Guedes. In a 2019 interview with Bloomberg News about the local economic outlook, Langoni described himself as optimistic.