Wednesday, March 3, 2010

The Overappreciated Brazilian Real

We keep jumping from one bubble to another. From the Le Figaro, more evidence that the Brazilian Real is among the latest victims of the Fed's decade-long policy of easy money:

Fair warning: given that inflation in Brazil has remained high while the Central Bank was helped by an appreciating domestic currency, ample capital inflows, high domestic interest rates, and low foreign interest rates, what should we expect to happen once the tide changes against Brazil?

1 comment:

訂晚餐 said...

thank you for you to make me learn more,thank you∩0∩ ........................................