Oecd Economic Surveys: Brazil 2006 by Oecd

By Oecd

Ublished on 24 November 2006. the subsequent fiscal Survey of Brazil may be ready in 2008. An fiscal Survey is released each 1½-2 years for every OECD nation.

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Sample text

These trends underscore the scope for boosting productivity through trade liberalisation, especially in those sectors that are furthest from the technological frontier, and are consistent with the fact that the rapid GDP growth that was achieved until the late 1970s on the back of import substitution was essentially due to factor accumulation, rather than productivity gains. Equally important is the evidence that investment by businesses on innovation has contributed to sector-level productivity gains.

But, in the interim, labour training is crucial for developing firm-specific skills and encouraging the accumulation of human capital by those individuals who are already in the workforce and will not, or cannot, engage in continuing education. 3% of GDP during 2000-05. Because of the dominant role of the “S” system in this area, federal involvement in labour training is limited and concentrates on conditional activation schemes for the unemployed and on labour placement. Publicly funded vocational education is in short supply, essentially because the Brazilian system does not have separate vocational and general education streams.

Monetary policy and credit The institutional framework for the conduct of monetary policy has combined inflation targeting and a floating exchange rate since 1999. The BCB is yet to be granted de jure autonomy, although it is perceived as de facto independent. Monetary policy has continued to deliver sustained disinflation since 2003. A3). Deviations of expected inflation from the target have narrowed over time. An important challenge in this area is to enhance the efficiency of monetary policy further, so that a given fall in inflation can be achieved through a lower increase in the policy interest rate.

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