September 01 2009
Brazil Economy: Too Much Stimulus?
Brazil’s rebound is impressive, though government intervention creates distortions that must be addressed. The election cycle destabilizes the operating environment.
by John Rumsey
There is no mistaking a sentiment uptick in perennially optimistic Brazil. The government has been treading a sensible path of fiscal and monetary stimulus with the largesse of over $200 billion in reserves built up during the fat years. But run up to elections may make it hard to rein in fiscal spending and reverse monetary easing as the economy improves.
Brazil is capturing the imagination ...
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