Question: 1. How does Brazil hope to control its currentaccount deficit through a tight monetary policy? What alternatives are available to control Brazils current-account deficit? 2.

1. How does Brazil hope to control its currentaccount deficit through a tight monetary policy? What alternatives are available to control Brazils current-account deficit? 2. How will Brazils tight money policy affect its fiscal deficit? How will it affect Brazils real (inflation-adjusted) interest rates, both shortterm and long-term rates? 3. Why have Brazils interest rates generally fallen in recent years?

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