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Economy & Business - August 2021
BRAZIL: Inflation comes back
Until recently economists worried that, held back by the coronavirus (Covid-19) pandemic, aggregate demand in the Brazilian economy has been too low. Now, with the economy almost completely reopened, they are worrying that aggregate demand might be too high, fuelling inflation. On 4 August the central bank (BCB) responded with the biggest interest rate increase in 18 years.
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