Brazil: Punishment in the right dose is healthy
The fiscal irresponsibility in recent years has not been limited to the federal government. The state and municipal governments have also disrespected the Fiscal Responsibility Law, if not directly, at least its spirit, often with the help of the National Treasury. The bill has now come due and the state governments are pressuring the central government for some relief. Missteps can aggravate the already fragile fiscal situation, writes Zeina Latif, Chief Economist of XPI.
Zeina Latif is chief economist at XP Investments. She holds master and doctorate degrees in Economics at University of Sao Paulo (USP).
Previously she worked at Royal Bank of Scotland as senior economist for Latin America, and ING, ABN Amro and HSBC Asset as chief economist for Brazil.
She is columnist at the newspaper Estado de São Paulo and she is counselor at the Social and Economic Development Council of the Republic Presidency.
