Monthly Archives: May 2013

Inside the mind of Argentina’s central bank

Who needs a nominal anchor? Although most central banks use a policy rate to anchor inflation that weighs expected inflation and GDP dynamics, the Argentine central bank (BCRA) is now following a fully passive approach, where monetary policy accommodates to … Continue reading

Posted in Blog | Tagged , , | Leave a comment

Brazil’s creative fiscal accounting may offset monetary tightening effect

With Brazilian inflation now above the target rate, in mid-April the central bank announced a rise in interest rates for the first time since July 2011. But the move, in the face of stubborn and diffuse pressure (over 70% of the … Continue reading

Posted in Blog | Tagged , , , , | Leave a comment

Brazil’s rebound remains uncertain

After a poor 2012, the central bank forecast growth of 4% for 2013; it has already cut this to 3.1%. International investors are going elsewhere in the region. With domestic investment falling, Brazil will do well even to hit that … Continue reading

Posted in Blog | Tagged , , , , | Leave a comment