Brazilians are predominantly conservative. Most people tend to uphold traditional values related to religion and family, as well as stereotypical views about gender roles, while showing limited acceptance of minorities (difference is tolerated, but often perceived as uncomfortable in the public sphere). We know that a society’s behaviors and opinions are influenced by how secure people feel about their own survival: the greater the sense of fear, the more individuals tend to rely on discipline imposed by religion and traditional values[1]. Charts 1 and 2 show how Brazilian society has increasingly identified itself as more right-leaning and more conservative over the past decades.
What happens when fiscal stimulus and directed credit expansion are excessive? The answer: the monetary authority is forced to maintain excessively high interest rates to contain inflation, which worsens the financial situation of both households and firms.
