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Latin American Economy & Business - April 2016 (ISSN 1741-7430)

Brazil: The shape of Temer economics

On 17 April Brazil’s federal chamber of deputies voted by 367 to 137 (with seven abstentions) to support impeachment proceedings against President Dilma Rousseff, achieving the necessary two-thirds majority to send the process on for consideration by the senate. There is heightened political uncertainty in Latin America’s largest economy right now, but at this stage one of the most probable outcomes is that the current vice president, Michel Temer, will be appointed to replace Rousseff in mid or late May, and will serve out the rest of her term in office, running up to the end of 2018. Here, we look at early pointers to what this might mean for economic policy.

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