Brazil in 2013

Brazil has been on the top of the list of emerging markets for the last years. Is this going to change from now on? In 2013, we certainly had negative signs: weak growth, inflation, and political interventions in state enterprises. Concerns with the advancement of public spending and doubts about the fiscal discipline of theContinue reading “Brazil in 2013”

Time to cool down? Is Brazilian economy overheated?

One starts to wonder if it Brazilian economy is overheated. The Economist for one, came with an article – Too Hot  (2/6/11)  Latin America’s biggest economy is more fragile than it appears. The Economist point is mainly this: the Brazilian government has a big head and risks not doing a good job implementing reforms that are needed. On that,Continue reading “Time to cool down? Is Brazilian economy overheated?”

Lula’s Legacy

Brazil’s charismatic (now ex) president Lula has been perceived as a great leader worldwide. Obama called him “the man” and Fidel Castro ” dear comrade”; in Brazil, after 8 years in power, his popularity rate was above 80%, demolishing the theory that being too long in power diminishes public approbation. Nonetheless, time will tell usContinue reading “Lula’s Legacy”

Multi-Speed Recovery

A very interesting blog post from a good economics blog, Zero Hedge. Although contemporaneous estimates of output gaps are somewhat elusive, the broad picture is clear: a growing portion of the global economy is facing inflation risks and the bulk of developed economies is no longer in the deflation danger zone. This uneven dynamic distributionContinue reading “Multi-Speed Recovery”

Brazil versus Mexico – inflation-wise

Mexico and Brazil, the two largest economies in Latin America, might look quite similar to foreign eyes. In fact, they couldn’t be more different. Take inflation behavior in the first quarter of 2010.  Inflation expectations worsened in Mexico as they did in Brazil.  Mexicans are dealing with around 6,5% versus a target of 4,5% inContinue reading “Brazil versus Mexico – inflation-wise”