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Interest rates

• Monetary policy

  Interest rates by decree: Lara Resende's theory vs. his plan

  André Lara Resende is right that interest is what drives Brazil's public debt, but his plan depends on a 2.5% neutral rate, below what the Treasury, the market and the central bank itself point to. By the theory he invokes, forcing the Selic down without cutting spending ends in inflation; the road to lower rates runs through a larger surplus, which makes room for private investment and tends to lower the neutral rate.

  Nov 4, 2026 · 12 min read