Brazil, Turkey and Russia become world’s first “reflation victims”

These countries' currencies never recovered from sharp devaluations caused by the pandemic last year.

RIO DE JANEIRO, BRAZIL - Brazil, along with Turkey and Russia, is part of the group of the first emerging economies forced to raise interest rates in the wave of global reflation caused by the ultra-expansionist fiscal and monetary policies of the United States.

The have in common that their currencies never recovered from sharp depreciations caused by the pandemic last year, although each suffers from its own particular fragilities.

"Brazil was the first reflation victim," says Marcos Casarin of Oxford Economics, referring to the prospect of very low inflation in advanced economies moving closer to desired values. The countdown . . .

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