Daly: Markets Believe in New Brazilian Administration

The transcript discusses the market's reaction to political changes in Brazil, particularly the impeachment vote and its implications for fiscal reforms. It highlights the need for spending caps and Social Security reform to address Brazil's fiscal challenges. The new government, led by technocrats, has a two-year window to implement unpopular but necessary measures before the next elections. Despite challenges, there is optimism for economic growth, with expectations of a 1-1.5% increase. The market remains confident in the new administration's plans.

What are the potential risks associated with the new government's fiscal reforms?

What lessons did the speaker learn from their experience with Lula's presidency?