Fiscal concerns are growing in Brazil as Congress approved a bill yesterday which opens the door to more fiscal support (outside the limits of the spending cap). And pressure for higher public spending seems likely to escalate given the worsening virus outbreak and with former President Lula potentially in the running for the 2022 election. Elsewhere, inflation is (once again) on the rise in Argentina which may prompt the government to double down on distortionary policymaking in search of a near-term fix. However, that would only lead to greater issues further down the line.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services