domingo, 16 de fevereiro de 2014

Nelson Barbosa interview in the Big State

Cant really understand this guy.

He said in Brazil exchange rate depreciation boosts inflation and hinders growth. Well, for most shocks I can think of causing a depreciation, I fully agree with him. The problem, it seems, is that he doesnt agree with himself. Why? Because he was one of the mentors behind the forced 2012 depreciation movement!

He also claimed that the government worrying about tariffs is not interventionism, it is catering to society's needs. This was a cheap, and wrong. Society is paying the cost these guys imposed on the provision of electricity, but it is sort of hidden in transfers from the government to the suppliers. Moreover, it looks like Nelson did not study auctions theory with sufficient care. You can defeat market power through auctions, Nelson. You dont have to meddle directly with prices to help society. Actually, by doing so you end up making things worse.

4 comentários:

  1. Ok, Rubens, whatever...

  2. O cara diz que acredita no Luciano Coutinho e que apoia a presidente, mas "apenas dá ideias". É incrivel a picaretagem dessa galera de ~apoio crítico~ ao PT, segue o oficialismo mas tira o dele da reta para uma provável crise. Isso não existe, ou vc é sério ou vc reelege a inflacionista, não há meio termo nessa altura do campeonato.