Revisiting an old concept
During the period of oil price hikes economists referred to a concept known as “the misery index”. This was the sum of the rate of inflation and the rate of unemployment. It might be useful to resurrect that concept in present-day Brazil. Inflation in 2014 was 6.41% and unemployment was 6.8% for a misery index number of 13.21. In 2015 inflation was 11% and unemployment 8.9% for a misery index number of 19.9.
That’s a 50.6% increase in the level of misery in 2015! It looks like the distance to Paradise is increasing. We must be heading the wrong way!!
No comments:
Post a Comment