In an interview with CNN , this Thursday (10), economist Elena Landau evaluated the market’s reaction to the speech of President-elect Luiz Inácio Lula da Silva (PT). According to Landau, the Brazilian economic experience shows that fiscal irresponsibility affects the poorest population.
“The entire Brazilian experience shows that whenever there is fiscal irresponsibility, it is the poor who suffer, it is they who pay for inflation, unemployment and high interest rates. There is this myth that the market dominates this discussion. The market acts on behalf of countless savers of all types of income”.
Landau also said that the market was taken by surprise, as he expected a “pragmatic Lula”.
“People had a little hope of having a Lula from 2003, a pragmatic Lula, understanding the importance of the fiscal issue to achieve social responsibility. What we saw was a populist discourse, a discourse that brings the monopoly of virtue to the left”, said the economist.
The Ibovespa, an index that brings together the largest companies listed on B3, the Brazilian stock exchange, lost BRL 156.269 billion in market value after a speech by President-elect Luiz Inácio Lula da Silva criticizing fiscal control policies sent shares plummeting.
Lula’s speech was made during his first visit to the Banco do Brasil Cultural Center (CCBB), in Brasília, headquarters of the transition team.
See the full interview in the video above.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
