Name proposed by the Minister of Finance, for a board of directors, he was one of those responsible for a document that defends changes in the role of the monetary authority, adjustments to the inflation target system and regulation of capital flow.
Together with the current president of BNDES, Aloizio Mercadante, Mello, now Secretary of Economic Policy for Finance, coordinated the “, published in September 2020 by the Perseu Abramo Foundation, linked to the PT.
The document, prepared as an alternative proposal to the government of Jair Bolsonaro (PL), was a kind of embryo of Lula’s government program in 2022.
Mello’s possible appointment to one of the open vacancies on the BC board is yet to be confirmed by Lula, one of the PT’s main spokespersons on the topic.
In one of the excerpts, the document says that “the Central Bank will need appropriate instruments to fulfill its institutional role, which must be expanded to include concern for the level of employment and monetary and economic stability.”
Another suggestion is a change in the inflation targeting regime, giving greater importance to the The model is used by several countries.
The PT plan calls for the construction of a new indicator for the inflation target, which guides the definition of the Selic rate, but without specifying what this index would be.
There is also a demand for the BC to be concerned with reducing social inequalities.
“The Central Bank cannot be oblivious to the serious problem of the multiple dimensions of inequality in Brazil (race, gender and income)”, says the text.
The plan calls for increased competition in the banking sector and measures to prevent the overvaluation of the exchange rate, which, according to the party’s diagnosis, has led to a process of deindustrialization in the last 30 years. It is at this point that the party defends capital regulation.
“To resume development, it will be essential to disarm the traps of the past that sustained long periods of high interest rates and an overvalued exchange rate, adopting intelligent regulation on capital inflows and outflows and on speculative positions in futures markets”, says the text.
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