Central Bank Globalization

Like my friend X I am surprised by how much the international economy affect our Central Bank decisions. This is certainly very different from the time I was Governor.

One possibility is that nowadays the central bankers are much more in touch than before. I imagine that Tombini and Awazu have so many meeting with the other bankers that they become influenced, and tend to put more weight on the global economy than they should.

But what really stinks about it is not that they end up choosing the wrong policy. Rather, that the gringos end up doing better than us in the Brazilian fixed income market.