Tag Archives: inflation

Argentina’s delicate balancing

President Mauricio Macri’s economic inheritance was toxic; his policy of gradual fiscal realignment looks like it will lead to success in this year’s crucial mid-term elections, but the country desperately needs investment to maintain the transition. Let me answer in … Continue reading

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Argentina’s banks seek path to normalization

  Argentina’s banks are facing a difficult transition period as the government and the central bank (BCRA) attempt to lower inflation and the country’s base rates, as well as facing subdued credit demand thanks to the economic recession. The banks … Continue reading

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Why a failure to raise Selic would be terrible news for Brazil.

  There are two reasons why the Brazilian Central Bank might surprise the market on Wednesday and hold Selic steady at 14.25% – but a failure to raise interest rates would spell very bad news for the economy. On Wednesday … Continue reading

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Levy’s appointment postpones days of reckoning

After months of warning about how disastrous a Dilma Rousseff’s re-election would be, Brazil’s financiers and economists quickly regrouped and began suggesting that Brazil’s economy would be OK after all, just as long as the president picked a Finance Minister the market liked. Now … Continue reading

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Central banking policy: beyond inflation, Brazilian style

With all the recent talk of Ben Bernanke’s recent new unemployment rate-related and GDP growth focused-monetary policy mandate for the Federal Reserve, and comments from soon-to-be Bank of England governor Mark Carney  reinforcing this shift away from myopic inflation-targeting, it is perhaps … Continue reading

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