Economist André Lara Resende did not imagine that an article he published in his newsletter on the Substack platform, in mid-September, would cause such a stir months later.
In the text, he points out that "the basic interest rate is extraordinarily high in Brazil" and proposes the creation of a new body to manage monetary and fiscal policies as a way to "escape this trap".
One of the formulators of the Plano Real, which stopped hyperinflation in the 1990s, Lara Resende assesses that the imbalance in public accounts is caused more by the high basic interest rate than by government spending itself — contrary to what a large part of the financial market defends.
"It's a 'Bolsa Rentista': interest on public debt paid to debt holders, who are also the richest part of the population. High interest rates are a factor that concentrates income and wealth," he told reporter Vinícius S. Mendes, from BBC News Brasil.
Read more about the interview with the economist.
