Brazilian central bank chief steps down from president-elect Rousseff’s team

Friday, November 19th 2010 - 16:01 UTC

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Brazilian central bank president Henrique Meirelles will not accept any invitation to remain as head of the bank unless president-elect Dilma Rousseff gives him full guarantees of “absolute autonomy” in running the institution. He also rejects the idea of holding on the job during the first quarter of 2011 until a definitive successor is named. Read full article

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xbarilox
What's so bad about not having “absolute autonomy”? I don't see the problem. It's not like “I'm the President of the Central Bank and I'll do what I want”.
Nov 19th, 2010 - 09:47 pm - Link - Report abuse 0
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Forgetit87
The text is too nice on Meirelles. His orthodox policy of high interest rates is the only reason the real is so overvalued today, for Brazil no longer has a current account surplus. And his attitude during the 2008-09 financial crisis has not been praised at all. As a matter of fact, it was harshly criticized by economists in both the opposition (such as José Serra) and the government coalition (such as Maria da Conceição). Brazil had begun to feel the effects of the financial crisis in Oct 2008 - but the Central Bank only reacted to that situation by Feb 2009, that is, it took Meirelles many months to tackle the recession by lowering the interest rate. Brazil's reaction to the recession was perhaps the most belated in the world. That it experienced a recession at all, is probably Meirelles' fault. And the anticyclical policies that rescued it from the crisis were advocated by Finance Minister Guido Mantega and by Rousseff - not by Meirelles.
Nov 19th, 2010 - 10:06 pm - Link - Report abuse 0
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xbarilox
“And the anticyclical policies that rescued it from the crisis were advocated by Finance Minister Guido Mantega and by Rousseff - not by Meirelles.” Well said Forgetit87, that is the truth.
Nov 19th, 2010 - 10:13 pm - Link - Report abuse 0
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