This Wednesday, Brazil’s Central Financial institution bumped the Selic benchmark rate of interest by one other share level, pushing it to six.25 % a 12 months. Nevertheless, there are issues that this newest transfer will probably be unable to tame inflation or cease Brazil from slipping into the worst attainable financial state of affairs: stagflation.
A portmanteau of stagnation and inflation, “stagflation” is feared by economists all over the world, being characterised by a sluggish economic system during which costs don’t cease rising.
With a mix of political and power crises, analysts in Brazil consider that, even when the nation just isn’t in stagflation but, it is going to be…
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