Describe and evaluate the main macroeconomic policies used by the Essay - 3

Describe and evaluate the main macroeconomic policies used by the regimen and Central Bank of Brazil over the last two years - Essay Exampleeen undergoing a phase of sharp economic slowdown as lump in the dry land has continued to sloping trough up the scale to touch its highest level in the decade, with 12 month rolling inflation index number (ICPA) clocking in at 7.70%, significantly above the countrys Central Bank cross of 6.5%. It must be noticed that this is the highest inflation rate prevailing in the country even since whitethorn 2005, when the rates touched 8.05%.Brazils Central Bank plays with the policy of interest rate of the country in a bid to control the inflation in the country, as well as shape the countrys currency (Media, 2015). Just recently Brazils Central Bank raised its interest rates for the third time in a row to touch the 12.75% level. The main causation behind the increase in the countrys discount rate was to control the rising inflation engulfing t he economic spheres of the country, along with being in line with the monetary tightening stance taken by the Central Bank.A look further into the past tells us that in line with the slowdown being witnessed in the Brazilian economy, the Central Bank had cut its harvest-feast prediction for the country by a phenomenal 90 basis points to 0.7%. Essential to notice here is the fact that such low growth figures are below are generally below what other Latin American economies have forecasted, with the expulsion of Argentina and Venezuela.Taxation has as well been a key cause of concern in the Brazilian economy. inside the time span of the last two years the establishment had given incentives to many industries to stimulate demand, for example by giving tax breaks to the auto sector. However, knowing where Brazil currently stands at the moment, the current government will have to take some non-populist measures including abandoning the incentives provided to various industries.The last two years have also seen changes in the countrys investment environment despite various efforts taken by the government and the Central Bank to control the