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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (65020)	8/5/2010 4:43:24 PM
From: elmatador	Respond to of 217778

"This remarkable performance has been underpinned by the authorities' robust policy framework, based on fiscal responsibility, exchange rate flexibility, and a credible inflation target," the IMF wrote in its report on the consultation. IMF Praises Robust Brazil Policy Framework In 2010 Review SAO PAULO (Dow Jones)--The International Monetary Fund in a statement Thursday praised Brazil's "robust policy framework" based on an annual consultation with the country's economic officials, completed on July 14. The IMF credited government policy for Brazil's rapid economic recovery from recession over the past year. "This remarkable performance has been underpinned by the authorities' robust policy framework, based on fiscal responsibility, exchange rate flexibility, and a credible inflation target," the IMF wrote in its report on the consultation. The IMF conducts bilateral consultations annually with member countries, pursuant to Article IV of its Articles of Agreement. In its evaluation, the IMF praised Brazil's "timely policy response" to the global financial crisis, while encouraging current efforts to unwind fiscal stimulus measures and reduce "expenditure rigidities" to enable a higher primary budget surplus. The report also highlighted the strength of Brazil's financial sector, claiming that government-controlled banks "played a critical role in preventing a potentially large output loss" as private banks withheld credit. However, the report cautioned against the "quasi-fiscal spending" incurred from public lending. On the monetary side, the IMF said keeping inflation expectations in check should remain the first priority of Brazil's central bank. The IMF recommended a cautious approach to the further accumulation of international reserves that balances the risks of exchange rate appreciation with the high costs of sterilization given high domestic interest rates. The IMF recognized that the Brazilian real "appears overvalued" and recognized a possible need for "temporary" capital controls to ease pressure on the currency. But the committee said fiscal adjustments were needed to address the issue in the long term. In October 2009, the government implemented a 2% tax on portfolio capital inflows to ease pressure on the real. The IMF committee also endorsed the Brazilian government's long-term development strategy, highlighting the need for greater public and private investment spending, especially on infrastructure, to enhance the country's competitiveness and growth potential. -By Todd Martinez, Dow Jones Newswires; 55-11-3544-7082; brazil@dowjones.com

To: THE ANT who wrote (65020)	8/10/2010 2:32:39 PM
From: elmatador	Read Replies (1) \| Respond to of 217778

The case foir the frozen chicken Nations develop their economies by moving up the value chain, away from churning out commodities and towards manufacturing, say the textbooks. Brazil has abundant natural resources, so the key to prosperity is to start making stuff, right? Wrong, he says, because of the "China effect". China mass manufactures at rock-bottom prices, with the consequence that over the past two decades the cost of manufactured goods has fallen fast, while demand has pushed up the cost of the commodities used to make the goods. This leads Camara to his slogan: "Brazil – the natural knowledge economy". He describes this as applying knowledge and technology to commodities to boost their value, and reels off examples: biofuels, in which Brazil leads thanks to its sugar cane ethanol and growing biodiesel production; renewable energy – 47% of the country's energy is already green, a world record; and climate change – Brazil's Amazon is vital to the planet's health. guardian.co.uk