Sour Mash Posted November 24, 2010 Share Posted November 24, 2010 BBC news Brazil central bank head 'ousted' as inflation rises Brazil's hawkish central bank head, Henrique Meirelles, is to be replaced, a local newspaper has said. His successor will be the central bank's financial regulation head, Alexandre Tombini, according to a report in Folha de Sao Paulo. The widely expected move by recently elected President Dilma Rousseff may pave the way for interest rate cuts. Yet data released on Tuesday showed that inflation is on the rise again, hitting 5.47% in November. This is well above the central bank's year-end target of 4.5%. That's right, cheap money and more debt is the way forward. Quote Link to comment Share on other sites More sharing options...
gf3 Posted November 24, 2010 Share Posted November 24, 2010 BBC news That's right, cheap money and more debt is the way forward. Not sure but isn't everything backwards these days? high interest rate attract hot money from abroad which pushes up inflation in the country. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted November 24, 2010 Share Posted November 24, 2010 (edited) Not sure but isn't everything backwards these days? high interest rate attract hot money from abroad which pushes up inflation in the country. They're taxing the hot money: Brazil’s Real Falls Most in Two Weeks After Inflow Tax Increase Brazil, Latin America’s largest economy, raised the so- called IOF tax on foreigners’ investments in fixed-income securities to 6 percent from 4 percent. It also boosted the levy on money brought into the country to make margin deposits for futures market trades to 6 percent from 0.38 percent. ED: Article published October 19, 2010. Edited November 24, 2010 by yellerkat Quote Link to comment Share on other sites More sharing options...
scepticus Posted November 24, 2010 Share Posted November 24, 2010 That's right, cheap money and more debt is the way forward. when in Rome... Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2010 Share Posted November 24, 2010 (edited) Not sure but isn't everything backwards these days? high interest rate attract hot money from abroad which pushes up inflation in the country. You shouldn't believe everything these politicians say. Capital outflows from 'emerging' nations far far outweigh inflows. The government in place is of the Club Med type. Large public spending, high inflation to get rid of the debt and enable more spending. Nothing to do with capital outflows/inflows. Their only gripe is that China is decimating their industrial base as it does with everyone else. The deficit spending is to compensate for that. Nothing changes, politicians are the same the world over. Edited November 24, 2010 by _w_ Quote Link to comment Share on other sites More sharing options...
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