Friday, August 06, 2010

Two Graphs from the July 31 issue of The Economist

Globally, the recession is over, due I suppose to the concerted action of the governments of the world to save their countries' financial institutions and their economic stimulus policies. Of course not all countries are doing equally well. Let us hope that there is no double dip as has happened in the past.


This is really very impressive, reflecting both the economic success of Brazil in the last two decades and pro-poor policies. There may be some things disguised in the data, such as inflation and changes in exchange rates, but the trend is so large, and continued over various governments that there has probably been a real major reduction in poverty. Of course, there is a huge variance in poverty rates among the geographic regions of Brazil.

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