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Why Brazil's permanent austerity policy is harming its economic future

The new ‘expenditure ceiling’ introduced in Brazil will lead to dramatic spending cuts and rising social inequalities.

Why Brazil's permanent austerity policy is harming its economic future
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This article is part of a series by openDemocracy and the Bretton Woods Project on the crisis of multilateralism. The views expressed are those of the author's only, and are not necessarily representative of either organisation.

In a recent speech, the IMF managing director Christine Lagarde called for new measures to secure growth and stability in an increasingly fragile global economy. These measures included use of fiscal policies such as progressive taxation and stronger social safety nets, as well as greater access to education, healthcare and infrastructure. Lagarde also highlighted the importance of reducing inequality for economic growth.