Política econômica brasileira é regida por pensamento mágico | André Lara Resende

SUBSCRIBE TO THE CHANNEL TO RECEIVE NOTIFICATIONS To learn more, visit: http://umbrasil.com Facebook and Instagram: @CanalUMBRASIL *Interview recorded on July 21, 2020. If 30 years ago the Brazilian economy was marked by total fiscal irresponsibility, it has come to live with an obsession with the opposite extreme, in which everything comes down to a balanced budget, so that there is no longer any discussion about what the country needs to do to develop, but only about where the eventual resources will come from. This is one of the criticisms of economist André Lara Resende to what he calls “fiscal dogmatism”, in an interview with UM BRASIL, produced by FecomercioSP. “How are we going to make the country ten years from now? This discussion doesn’t exist. The only discussion that is being held is whether or not we balance the budget, where we are going to cut [public spending]. As if it were some magic thing, as long as we balance the fiscal budget, investments will appear and the country will grow. This is clearly not true. This is magical thinking,” he says. Resende, known for being one of the creators of the Plano Real, criticizes concepts taken as true in economics, such as that issuing currency causes inflation and stabilizing public debt increases investor confidence. “If you can issue monetary base to save the financial system [as in the 2008 crisis, without generating inflation], why can’t you issue it to provide supplementary income in a dramatic pandemic situation like this?”, asks the economist. The opinions expressed in this video do not necessarily reflect the position of Canal UM BRASIL. #AndréLaraResende #Economy #CanalUMBRASIL