Monetary Policy, Public Debt and World Growth

BRAZIL ECONOMICS - Report 24 Oct 2022 by Affonso Pastore, Cristina Pinotti, Paula Magalhães and Diego Brandao

In 2023, global growth will decelerate substantially, with many countries suffering recessions, especially in Europe. That outcome will be a consequence of the inevitable course corrections in the expansionary policies – monetary and fiscal – used in reaction to the pandemic. In the first part of this report, we summarize the analysis of the IMF about the changes in monetary and fiscal policies indicated in its last Fiscal Monitor. In the second part, we analyze the difference between the “snapshot” and the “movie” regarding the Brazilian fiscal situation and explore some of the consequences of the country’s monetary policy.

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