Blurring the mandate
Is the Central Bank targeting growth?
Oct 29th 2011 | BRASÍLIA
For much of the last century inflation was as prominent a feature of Brazilian life as football. It was finally tamed, first by the Real Plan of 1994 involving a new currency and fiscal measures, and then from 1999 by requiring the Central Bank, which was granted operational independence, to set interest rates to meet an inflation target. Since 2005 that target has been 4.5%, plus or minus two percentage points. So the Central Bank surprised everyone in August when it cut its benchmark rate by half a point (to 12%) eventhough inflation was then at 6.9%. On October 19th, the bank did the same again. So is the government of President Dilma Rousseff, in office since January, giving priority to other goals, such as sustaining growth and preventing the overvaluation of the currency, rather than keeping inflation low? And has the Central Bank lost its independence?
No, say officials, who cite two sets of reasons for the rate cuts. First, having overheated last year, the economy stalled in the third quarter, partly as a result of earlier interest-rate rises and modest fiscal tightening. (...)
The first paragraph of the text
Quem é TIM estuda de graça com nosso Cronograma de Estudos!
Você que é cliente TIM já tem acesso ilimitado às videoaulas e exercícios de todas as disciplinas do Stoodi, sem consumir seu pacote de dados. Agora, que tal aproveitar acesso gratuito ao nosso Cronograma de Estudos?
Para habilitar seu benefício é preciso:
- Fazer o cadastro ou login no site Stoodi pelo celular
- Estar conectado a uma rede móvel da TIM
Vamos lá? :)