Are dire public finances hindering the central bank from tackling inflation?
If fast-rising prices are simply a passing effect of the real’s recent fall, which has pushed up the cost of imported goods, then they are not too troubling. But some economists have a more alarming explanation: that Brazil’s budgetary woes are so extreme that they have undermined the central bank’s power to fight inflation—a phenomenon known as fiscal dominance.
- Full Metal Jacket
• Unlike some of its Latin American peers, Brazil has never managed to actually get inflation fluctuating symmetrically around the target. Typically the distribution of observed inflation deviation from the target has been tilted to the right, indicating...
- Direto Do The New York Times Editorial Board: Brazil’s Next Steps.
After a decade of fast growth and rising incomes,
Brazil has hit a rough patch that is testing its government’s ability to manage
the economy and satisfy the growing aspirations of its people. President Dilma
Rousseff, who faces elections next year,...
- The Economist:brazil's Economy - Wild Horses
Inflation is at 6.3% and is poised to break through the ceiling of the Central Bank’s target of 2.5-6.5% for the first time since it was adopted in 2006. That is despite the currency surging to 1.58 reais to the dollar, close to its peak since it was...
- Brazil's Economy.
INFLATION is at 6.3% and is poised to break through the ceiling of the Central Bank’s target of 2.5-6.5% for the first time since it was adopted in 2006. That is despite the currency surging to 1.58 reais to the dollar, close to its peak since it was...
- Economia Brasileira
Brazil’s economy
More inflation, less growth
In fact, the headline figure underestimates inflationary pressures. If the federal government had not capped petrol prices, and municipalities frozen public-transport fares before October’s local elections,...
