Brazil’s Institutional Limbo
Brazil's presidential election will determine the future of the central bank – and therefore the country's macroeconomic trajectory. The 50-year old institution is ripe for reform, but neither candidate seems ready to give it the independence it needs, or to ensure that it is truly accountable to citizens.
SÃO PAULO – International investors are watching closely as Brazilians prepare to vote in the second round of the presidential election on October 26. Their vote will not only decide who will be the country’s next president; it may also determine the future of the Central Bank of Brazil (BCB), and therefore the country’s macroeconomic trajectory.