Armínio Fraga: "Brazil is beginning to provide answers"
The guru of presidential candidate Aécio Neves, a member of the PSDB party and former president of the Central Bank, foresees solutions for the country to stand out among emerging markets; he highlights the normalization of interest rates and the privatization of infrastructure; "And now they are also talking about moderating fiscal policy and expanding credit from public banks. These are traditional responses in this type of situation."
247 - Economist Armínio Fraga has returned to the political scene as a guru to presidential candidate Aécio Neves. A former president of the Central Bank (1999-2003) during Fernando Henrique Cardoso's administration, he has served as a bridge for the senator from Minas Gerais to connect with the financial market.
In an interview with Folha de S. Paulo, Armínio predicts ways out of the emerging markets crisis for the country, but states that defending itself solely through interest rates is not enough. According to the economist, greater control over government spending could help Brazil navigate this turbulence.
According to the economist, the slowdown in Chinese growth and the recovery of the US, with the consequent migration of capital there, are the new global trend. The times of zero interest rates to induce growth are coming to an end.
“Brazil has begun to show some signs of improvement, with the normalization of interest rates, which were very low with no indication that inflation was under control,” he says. “There have been infrastructure privatizations. And now they are also talking about moderating fiscal policy and expanding credit from public banks. These are traditional responses in this type of situation,” he added (read more). in full).