Thoughts and discussion on inequality and development in Latin America in English...y Español
Tuesday, October 20, 2009
A tax on capital inflows in Brazil
Brazil just announced a 2% tax on foreign investment in equity and fixed income. While some market "experts" may be talking about credibility once again, this is good news because it will help to increase Brazil's policy space. It is not clear, however, whether it will stop the appreciation of the real or not...