In an interview with CNN this Friday (2nd), Carlos Kawall, former Secretary of the National Treasury, said that “the country’s fiscal policy should support monetary policy“.
“If the economy is growing a lot and does not require fiscal stimuli, and if the interest rate is high, because inflation is still high, it is time for fiscal policy to come in as support for monetary policy”, he evaluated.
“The recipe is to spend less, not more, and with that the interest rate could fall, as expected until the elections, and the economy recover over the next year, generating income and employment.”
According to him, the idea of spending more because you have a lower debt, “not because you owe less, but because you are comparing it with a higher GDP number”, is wrong.
“Public spending is most needed when the economy is depressed, in exceptional situations like the pandemic.”
Check out the full interview in the video above.
Source: CNN Brasil
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