Thursday, March 20, 2008

The Brazilian Economy

The Economist, which while I can read online is one of the things I miss about being able to buy when I was back in the States, and probably the best magazine out there, has an interesting article on the state of the Brazilian economy.

TAKE two neighbouring economies, both heavily dependent on commodity prices to make their trade figures look good. Give one an orthodox monetary policy, watch it embrace foreign investors and float its currency. Hand the other over to mavericks who have resorted to fixing prices, banning or taxing some of their own exports and baldly lying about the inflation rate. The result? The rascal—Argentina—continues to grow at a blistering 9% clip, while by contrast well-behaved Brazil plods along (see chart). Is it time to rewrite the economics textbooks? Argentines would like to think so. But there are signs that Brazil may yet come out ahead.

Check out the full write up here.

No comments: