Economist Calls Brazil’s Monetary Policy Inconsistent

Roberto Macedo, one of Brazil’s best-known economists and commentators, says the government’s inflation targeting system is not working as effectively in Brazil as in other countries, with the result that interest rates are too high to control inflation.

He describes the system as "naïve" and accuses the government of being inconsistent by extending credit at the same time as operating a tight monetary policy.

"This means that, on one hand, you’re holding the brake down with interest rates, but on the other you’re accelerating by expanding credit," he said.

In a wide-ranging interview with Brazil Political Comment, Macedo puts forward alternative ways of combating inflation and expresses optimism over the microeconomic area. He also explains why demographic changes will help narrow Brazil’s social gap in the medium term.

The interview is available in English and Portuguese at
www.brazilpoliticalcomment.com.br 

You can also read John Fitzpatrick’s article "No Consistency in Brazil’s Foreign Policy" in which he describes how Brazil’s politicians have turned their backs on foreign affairs and left them in the hands of civil servants in Brasí­lia who have set their own agenda. Here is an excerpt:

"The reality .. is that Brazil’s foreign policy is a sham, established by bureaucrats, which combines anti-Americanism (sometimes strident, sometimes mild), anti-Europeanism in terms of trade but pro-European when Europe is against American interests, a phony friendship with "brother" Latin countries like Venezuela and Cuba, an uneasy rivalry with Argentina, an avuncular relationship with minnows like Paraguay, a  wishy-washy "solidarity" with poor countries in Africa, particularly Portuguese-speaking places, and closer links with some Middle Eastern countries but not Israel. 

"It is underpinned by an almost obsessive desire to become a permanent member of the UN Security Council and a distinct reluctance to see any kind of Pan-American free trade area which would be dominated by the US."

Tags:

You May Also Like

Hair Apparent

The controversy became cause célèbre when bestseller writer Luis Fernando Verissimo for two days ...

Brazil's Petrobras

Brazil to Increase Oil Production by 5% This Year

Oil production in Brazil should grow by 5.3% this year to reach a daily ...

From Brazil’s Inequality Women Get the Larger Share

On its 20th anniversary, Brazil’s National Women’s Defense Council still faces the challenge of ...

Under the Upside Down Moon in Brazil

Eventually, Dulce was appointed Ministro da Cultura fulfilling her dream of working for racial ...

Venezuela and Russia Are Top Importers of Brazil’s Federal District

Chicken and giblets exports from the Brazilian capital BrasÀ­lia totaled US$ 13.251 million in ...

Brazilian Justice Orders Passports to Be Returned to US Pilots in 72 Hours

Joe Lepore and Jan Paladino, the two American pilots who have been retained in ...

RAPIDINHAS

Is the US in the process of becoming a fascist nation with the blessings ...

Qatar Puts Brazilian Bus Company into Road of Success

Company Comil Carrocerias e Onibus (Comil Bodies and Buses), from the city of Erechim ...

Cover of Fernando Morais's book Montenegro

Brazilian Who Invented Embraer Had to Fight Red Tape Before Flying

"If, instead of one, Brazil had had five Montenegros, it would be an infinitely ...

Brazil’s Oi Swallows Competition and Eyes Telephone Market Overseas

Brazil's Telecommunication Company Oi's president, Luiz Eduardo Falco, upon confirming the purchase of control ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`