The Minister of Finance, Fernando Haddad, said, this Friday (10th), in an exclusive interview with CNN do not agree with the view of economist André Lara Resende that countries that issue their own currency do not run a fiscal risk, the so-called “default”, by increasing the debt to facilitate public investment.
Haddad said he admires Lara Resende, one of the creators of the Real Plan, but that he does not agree with the economist on the relationship between issuing one’s own currency and lower fiscal risk.
The minister then highlights the cases of Turkey and Argentina. “For me, uncontrolled inflation, hyperinflation, inflation as is happening in Turkey and Argentina, these are countries that are losing control over their currencies. And trying to recover the hardest feathers. For me, this is a form of default. It is not a classic default, but 100% inflation, it is a way of using the inflation tax in favor of the debtor, who is the issuer of the currency”.
He also points out that Brazil does not have a dollarized economy. “Our debt, for example, is in reais. We are the monetary authority that issues real. We do not have a dollarized economy and debt”.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
