Brazil’s Mantega
Posted by WARREN MOSLER on January 4th, 2011
The Brazilian miracle-
Tight enough fiscal/low enough domestic demand for an appreciating currency,
FX buying to keep it there and support the exporters with lower real wages
= ‘good looking’ Financials at the expense of the overall real standard of living
*DJ Brazil’s Mantega: Dollar Weaker Globally On US Econ Improvement
*DJ Brazil’s Mantega: Govt Ready To Take Measures Against Strong Real
*DJ Brazil’s Mantega: Govt Preparing Reduction Of Spending
*DJ Brazil’s Mantega: Govt Starts Year With Low Spending
*DJ Brazil’s Mantega: Current Dollar Level Hurts Exports
*DJ Brazil’s Mantega: Won’t Announce Any Currency Measures Today
*DJ Brazil’s Mantega: Will Seek To Protect Trade Surplus
*DJ Brazil’s Mantega: Will Take Measures To Maintain Trade Surplus
*DJ Brazil’s Mantega: We’ll Act In Both Forex And Commercial Areas
*DJ Brazil’s Mantega: We Have Authorization Of G-20 To Act In Forex
*DJ Brazil’s Mantega: Haven’t Defined Size Of Budget Cuts
The miracle is the leadership gets the population to support them.
January 5th, 2011 at 12:08 am
Hi Warren
I was wondering if the policies of any particular emerging economics impress you.
I think Indian, Singapore has a low employment rate. Also, from an employment perspective, it seems Brazil is quite low (saw both ~6% and ~9% so not sure which is the right number).
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WARREN MOSLER Reply:
January 5th, 2011 at 6:49 am
I’m not a fan of export driven growth models
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January 5th, 2011 at 10:48 am
Re: I’m not a fan of export driven growth models.
I couldn’t agree with you more. Half a lifetime of living in S. America and travel elsewhere has more than amply demonstrated the catastrophe of neo-liberal economics. It creates a horrible GINI index, and concretely it results in what has aptly been termed “islands of wealth in a sea poverty.” The governing elites in these countries are just incredibly self-centered, basically shills for global corporate interests and they totally buy into the crassest ideals of “progress.”
Perhaps you know of an exception, Warren, but I can’t think of one in the entire “2nd” and “3rd” worlds–maybe Argentina, recently, up to a very limited point, inasmuch as they told the IMF to take a hike.
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January 7th, 2011 at 9:28 pm
On Wed, Jan 5, 2011 at 1:54 AM, Aaron Stearns @avmltd.com> wrote:
Hi Warren, I’ve been in Brazil for two weeks now and from the ground level I see an inflation problem developing. Nomimal prices are up all over the place (food, parking, clothing, cinema, ect..) from the same time last I was here last year. And the Brazilians are really starting to take notice. Real estate prices through the roof as well.
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Andrew Reply:
January 11th, 2011 at 11:33 am
What is causing the inflation?
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