Over the past few days, public debate in Brazil has been dominated by a conundrum created by the Covid-19 pandemic: should the country agree with state governors and drive its economy into recession to contain the spread, or should Brazil follow President Jair Bolsonaro and accept the casualties as inevitable side effects to save the economy. Neither side seems to be open to a middle-of-the-road solution.
The argument we explained on March 25 grew stronger after Brazil’s Central Bank presented a chart hoping to “prove” that stricter containment measures would cause the steepest economic downturn the country could face. “It is a fact that, the more public policies you do to flatten the curve of new cases, the more restrictions to job offers you create and, therefore, you deepen the economic recession,” said the Central Bank’s Economic Policy Director, Fabio Kanczuk, during a presentation of inflation perspectives.
Questioned by The Brazilian Report on how this situation applies to the Brazilian population,