Real business cycle theory in Brazil
How much gdp shrunk last year: 3.8%
How much it is forecast to shrink this year: about the same.
The current rate of unemployment: 8.2%, it had been 4.3% only three years ago.
The current inflation rate: over ten percent.
All critics of real business cycle theory should commit these numbers to heart; this is more than 200 million people we are talking about. We’re at the point where impeachment of the President is the “good news scenario.”