How can one control the inflationary phenomenon that exists all around the world? This is clearly not a simple question to answer, even for specialists in the matter. At each session, my colleagues can not agree on how to control inflation in a context where international prices of food and energy continue to grow. One conclusion we arrived and there was much discussion, was that while the sharp increase in international prices of food and energy prices hit all economies, at least benefit are those economies that are net exporters of these commodities. A second conclusion that was apparent almost immediately above, was that this scheme generates a great opportunity for those countries where they are not net exporters of these commodities, but may become so because they have enough natural resources. This is the case of Brazil, not only with the energy issue with the oil (since it is a policy of more than two decades) but also with the issue of bio-fuels and promote policies to increase grain acreage. Brazil shows the way to limit dependence on imported commodities and seize the opportunity offered by the high international prices for the same. Thinking of Mexico, the first thing I would ask about is: How is impacting high energy prices and food in the Mexican economy? On 16 May, fears of inflation led the Bank of Mexico decided to maintain the benchmark rate steady. The context is not the best because, as the monetary authority, inflationary pressures continue to rise along with the risks of slower economic growth over the possible U.S.
By illini | Published December 9, 2013