Brazil’s Currency Conundrum: The Dual Trap Threatening Economic Stability

Brazil’s economic policy framework, established after the Real Plan’s success in combating hyperinflation, rests on three pillars: inflation targeting, primary surplus, and floating exchange rates. This approach, initiated under President Fernando Henrique Cardoso and continued in Lula’s first term, proved effective in taming hyperinflation and boosting economic growth. The 2007/2008 global financial crisis, however, exposed […]

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