Brazil's Meirelles Says Changing Inflation Goals Is a Mistake

The video discusses the importance of managing inflation in Brazil, suggesting that maintaining a 3% inflation target is suitable given the country's historical context. It emphasizes the need for reforms, such as Social Security and administrative changes, to control expenses and prevent unnecessary inflation. The video warns against the dangers of unchecked spending, which previously led to a recession in 2015-2016.

What is the suggested inflation target for Brazil according to the speaker?

• 4%

• 3%

• 2%

• 1%

Why does the speaker believe reforms are necessary?

• To increase government spending

• To control unnecessary inflation

• To reduce taxes

• To boost economic growth

What is the purpose of having an anchor based on expenses?

• To decrease government revenue

• To increase inflation

• To limit the expansion of expenses

• To allow free expansion of expenses

What economic event occurred in 2015-2016 due to unsustainable expenses?

• Deflation

• Stagnation

• Recession

• Economic boom

What is the main lesson from the 2015-2016 economic experience?

• Maintain fiscal discipline

• Encourage inflation

• Reduce taxes

• Increase government spending