Economist Asks

RAÚL CASTRO recently announced that the country would institute a limit of two five-year terms for top officials. That invites the question of whether he himself will obey this rule. Readers of The Economist appear to take his word for it: 69% of them think that he will.

This week's question looks at Brazil's simultaneous efforts to rein in inflation and a rising real. Some suggest that the government should welcome the inflows, let the real rise and cut public spending to eliminate the expansionary fiscal deficit. All that would bear down on inflation and in turn allow the Central Bank to cut rates, thereby stemming inflows and eventually allowing the currency to fall. But the government is afraid this would lead to a destabilising outflow once rich countries start tightening monetary policy—and that manufacturers would be unable to survive a stronger real, even temporarily. What do you think? Let us know.