Skip to main content

Brazil "QE" debate masks deeper policy challenge

Claims that large-scale foreign currency purchases have caused the Brazilian Central Bank to unwittingly engage in a form of quantitative easing are wide of the mark. But it does seem that during 2010 and 2011 monetary policy was kept too loose in the face of rapid capital inflows, which in turn helped to sow the seeds of the current credit bubble.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.