IMF Therapy for Brazil
Brazil is trapped in a vicious circle: Even if the government were willing and able to carry out the necessary fiscal adjustment, credibility has been too severely damaged by the Petrobras scandal to make progress in the near term. In this context, negotiating an IMF adjustment program is the country's best option.
MONTEVIDEO – Brazil’s economy is in intensive care. And its intensifying political crisis – impeachment proceedings have now been initiated against President Dilma Rousseff for allegedly using irregular accounting maneuvers to disguise the size of the budget deficit – is raising serious questions about who can provide the much-needed treatment.