The level of inflation may have risen

Autores

  • José Julio Senna
  • Solange Monteiro

Resumo

The Brazilian Central Bank is struggling today with the persistence of inflation above the ceiling of the inflation target range, and its hands are tied by a severe recession, a high fiscal deficit, and a difficult political scenario. José Júlio Senna, head of monetary policy studies at the Brazilian Institute of Economics and former director of monetary policy for the Central Bank, says that recent monetary policy is likely to result in a change of the inflation level of the economy from 6% to 8%–8.5% and the consequence will be more unstable inflation. “The only chance we have to make inflation targeting work properly is a true fiscal adjustment built on a consensus of the political parties about reform,” he says.

Biografia do Autor

Solange Monteiro

Entrevistador

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Publicado

2016-06-01

Edição

Seção

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