[OPE-L:5688] Re: Real under attack

Francisco P. Cipolla (cipolla@SOCIAIS.UFPR.BR)
Fri, 7 Nov 1997 09:38:19 -0300 (WDT)

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If the problem is the overvaluation of the Real and the impending threat o
devaluation then it is interesting to note that all measures taken by the
government tend to work in the direction of overvaluing the Real even
more: lower internal inflation due to more recession and eventually more
dollars pouring, both due to high interest rates. My bet is a devaluation
right after election day. There will be then four years to forget that the
Real is not so stable.