As expected, the Fund's Board of Directors approved the review of Argentina's program, although it made it clear that Massa failed to meet all goals. The IMF applauds the fiscal effort promised by...
Brazil’s problems strike the micro more than the macroeconomy
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Brazil’s problems strike the micro more than the macroeconomy
Fourth week
May 2017
Last week, there were two political events originated in the external front that may have an impact on the local macro: Trump is under scrutiny for his link with Russia and Brazil’s President Temer is under the microscope for corruption scandals. Although it is yet premature to accurately guess the the magnitude of the impact these events could cause, the second one demands more attention since it takes place in our neighbourhood and affects our biggest financial partner. The transmission channels for an external shock from Brazil are basically four.