Brazil and Turkey: What Turkey’s Low-Interest Gamble Teaches Lula
Between 2021 and 2023, Turkey cut rates while inflation soared, and paid dearly. With a proposal to lower the Selic debated in Brazil, what does the Turkish precedent really teach?
Between 2021 and 2023, Turkey cut rates while inflation soared, and paid dearly. With a proposal to lower the Selic debated in Brazil, what does the Turkish precedent really teach?
A proposal by André Lara Resende to take the Selic from 13.75% to 7.5% has reached Lula’s radar. Here are the arguments of those who want cheaper debt and the warnings of those who fear pressure on the dollar.
