Monday, July 5, 2010

Macroeconomic policy fight in Brazil

From Bloomberg: "... Brazil’s state development bank President Luciano Coutinho rejected criticism that record lending is placing a burden on the central bank to keep inflation in check and slowing the reduction of public debt....
Central bank President Henrique Meirelles, in an interview with Valor Economico newspaper published today, said that the development bank’s lending may push rates higher because it reduces the efficiency of monetary policy...."
Full text
Comment: It's the old story all over again. Brazil never makes new mistakes, it only repeats its old. This is probably happening again when the credit-pushers like Luciano Coutinho will prevail. Good bye Brazil, welcome next in line for one more aborted "hen's flight" (voo da galinha).

No comments:

Post a Comment