Brazil: Open to complimentary measures to capital inflow tax

Brazil’s finance minister says the government is open to measures that will compliment the capital inflow tax. Sounds like they have put up a hurdle to capital but are in the process of building a wall.

This is worrying if other emerging market countries join Brazil in trying to shield their economies from foreign inflows. It is essentially a form of protectionism, artificially keeping currencies weak so that they can remain competitive in export markets.