How stable are the economies of Brazil and Argentina?
The Brazilian economy is very stable. The recent worldwide slowdown has affected the Brazilian economy, but Brazil has weathered the storm much better than many other countries. Recent economic policies in Brazil have held down inflation and allowed for slow but steady growth. Brazil is a favored destination for investors because interest rates are some of the highest in world. That makes Brazil attractive for investors, but it makes borrowing money very expensive. Recent governmental policies have also resulted in a strengthening of the Brazilian currency in comparison to the dollar. A strong currency tends to hold down agricultural exports, so that is a concern in the agricultural community. A strong Brazilian currency also causes additional problems for Brazilian farmers because soybean prices are set in dollars at the Chicago Board of Trade, but the farmers are paid in the local currency. Whenever the local currency gets stronger, Brazilian farmers put less money in their pocket fo
