Remember this chart from a Chart of The Day post last week?
It showed that new car sales all over the region were way down in Janaury/February except for in Brazil. And IKN regular comment-leaver Cesar mentioned at the time the reason for Brazil’s relisience, namely tax cuts on car sales from the Lula gov’t. The good news today is that Brazil, via FinMin Mantega, has announced that the tax breaks will continue for another three months (to June ’09) so as to “preserve jobs and maintain output”.
To paraphrase Animal Farm and mash with Nixon; We’re all Keynesians now but some are more Keynesian than others.