In October 2002, Brazilians elected leftist President Luiz Inacio Lula da Silva, for the first time in the history of this country. Because the markets faltered in reply, Lula wants to reassert its commitment to fiscal discipline, a floating exchange rate and inflation. As of August 2003, however, his attempts to change the mood in the market threatens the country faces an impending recession. Skeptics began to worry that the new PT (Workers Party) government will have to resort to printing money to meet its election promises. In addition, after the massive Argentine default on its public debt at the end of 2001, observers have questioned the sustainability of debt in Brazil. Lula was under intense pressure to deliver results immediately take measures to help stimulate the economy. "Hide
by Rafael Di Tella, Laura Alfaro, Ingrid Vogel Source: Harvard Business School 24 pages. Publication Date: February 3, 2004. Prod. #: 704028-PDF-ENG
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