Economist André Lara Resende advocates for reduced interest rates in Brazil

Economist André Lara Resende, one of the architects of Brazil’s Plano Real, has shifted his economic stance away from neoliberalism toward developmentalist views. Resende argues against traditional fiscal austerity and the belief that high interest rates are the primary tool for controlling inflation.

He suggests that reducing the Selic rate would immediately lower the cost of Brazil's debt. Resende notes that while the national debt is significant, at approximately 80% of GDP, it is almost entirely held in national currency by domestic residents. He contends that a state issuing its own currency does not face the same risks as one with heavy foreign-denominated debt.