The Economy Brazil pushes markets to the edge

It may appear strange that the problems facing the Brazilian economy effects the U.S. as well. The financial depressions of Brazil bring the wealth of the nation down in turn. Brazil is the largest economy in Latin America, accounting for almost half of the continent's total output, and it is the eighth largest economy in the world. Yet, it is still developing. Brazil possesses major agricultural, mining, manufacturing, and service sectors, Brazil's economy enlarges …

…in consumption, which decreases demand. Monetary policy is among interest rates and the money supply. As interest rates rise, loans become hard to obtain because they are expensive. Therefore, savings rises and consumption falls. Decreasing aggregate demand. The economy is expected to push growth up to 3% in 2000. In the long-run, reforms in social security, tax, and administrative systems, laid the real foundation for economic stability. Bibliography http://www.fazenda.gov.br/ingles/real/islide30.html