stability -- a floating currency. One way she could try
TAX BREAKS FOR EXPORTERS? A tighter grip on fiscal accounts would take away some of the stimulus fueling Brazil's annual economic growth of about 7 percent, while reducing the need for higher interest rates and easing pressure on the currency.Coach Tote Bags Air Max At 10.75 percent, Brazil's benchmark lending rate is among the highest in the world, above those of advanced economies and double the level of Russia, India and China, its peers in the so-called BRIC group of major emerging economies. The real has gained nearly 6 percent since late June, even as the government has stepped up intervention in the foreign exchange market and tripled a tax on foreign investment in local bonds. "We will probably adopt ... more measures like the ones we are adopting to prevent the real from strengthening so much," Planning Minister Paulo Bernardo told Reuters. A challenge for Rousseff will be to control capital inflows without compromising a key source of Brazil's hard earned stability -- a floating currency. One way she could try to get around the currency problem is by making exporters more competitive through tax breaks, said Fernando Ferro, head of the ruling Workers' Party in the lower house of Congress. Coach Shoulder Bags Coach Sling Bags Benefits to exporters could be part of broader efforts to streamline Brazil's Byzantine tax system, trimming revenues initially but increasing them in the long run. Rousseff's coalition in Congress will be larger than the one Lula had, increasing the chances of approval. With the economy growing rapidly and foreign capital likely to keep on coming, Rousseff will have to manage inflows without becoming too dependent on them to finance a growing current account deficit. Asked what Lula thought were the challenges for the next government, one of his top aides Gilberto Carvalho said: "We need to consolidate the (economic) model and not reverse it." Coach Handbags Coach Purse