The Minister of Finance, Fernando Haddad, questioned, this Friday (10th), in an exclusive interview with CNN how would it be possible to make a healthy fiscal policy with the current interest rate, of 13.75% per year, which drops revenue and weakens the economy.
“In fact, this division between monetary and fiscal policy is a way of thinking about the economy that may not be able to translate the complexity of this organism, which has two arms — fiscal and monetary — but which have to work together. And it’s not one waiting for the other to do it and then start working”, declared Haddad.
“It is a relationship of trust that is established between the fiscal and monetary authorities precisely so that, when observing in the same direction, competing for the same purposes, one policy strengthens the other. There is no such separation, this is not how the economy works. The monetary affects the fiscal and the fiscal affects the monetary,” he continued.
Citing an interview with economist Olivier Blanchard, Haddad stated that he changed his view, citing his metaphor that “fiscal and monetary are arms of the same organism”.
“I strongly believe that we can amonize these things”, explained Haddad.
Regarding the new fiscal anchor that will be announced this month, the minister mentions that it is not an imposing thing, but rather a negotiation with society, in which he will calibrate and test the model.
Source: CNN Brasil
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