Economist Paulo Picchetti, a researcher at the Brazilian Institute of Economics at Fundação Getúlio Vargas (Ibre-FGV) and professor at the School of Economics at FGV-SP, considers the current scenario of Brazilian inflation to be more complicated since the stabilization of the economy in July 1994 , with the edition of Plano Real.
Since then, he points out two critical moments of inflation acceleration: in 2003, with the crisis of expectations, when the dollar reached R$ 4, and in 2014, with tariff readjustments. In both moments, the scenario was more easily reversed because the Brazilian economy was coming from a period of expansion. Today, however, the space for fiscal policy adjustment exists, but it is smaller. “We have had the economy side by side for a long time. This reduces the degrees of freedom, on the one hand, to stimulate the economy and, on the other, to fight inflation.” Below are the main excerpts from the interview.
Read Also
- Banks confronted new type of phishing: ‘Salami’ attacks Sep 16, 2021
- How much did the Egyptian Al-Ahly pay in the Hossam Hassan deal? Aug 27, 2021
- Salesforce exceeds market expectations with its results May 30, 2021
- Inflation in August will be around 2.7% and will be the lowest of the year Sep 13, 2021
- China to tighten environmental approval for polluting projects May 31, 2021
- Lourdes Sacín on Xoana: “She earns her money honestly, but they shouldn’t advertise it” Sep 17, 2021
- “Balance is essential for life and business, but if you are going to tip the balance, make sure you tip it for the long term” May 31, 2021