Downgrading and Fiscal Adjustment – Two Unrelated Aspects of Brazil’s Economic Structure

ARTHUR PINHEIRO MACHADO, FORBES, 9/1/2015 

Maybe Levy cannot handle economics, or maybe he can’t handle Congress.” Those words were spoken in July by none other than Eduardo Cunha, the super-powerful and controversial President of Brazil’s House of Representatives, reflecting the mood that led to Brazil’s downgrade by Moody’s. To understand the real reasons behind this rating, let us take a closer look at Cunha’s words.

Brazil’s Finance Minister Joaquim Levy. Photographer: Michael Nagle/Bloomberg

Brazil’s Finance Minister Joaquim Levy. Photographer: Michael Nagle/Bloomberg

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