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When the Social Planner faces Principal-Agent Conflicts

 By: Jéssica Dutra [1]

 First of all, I would like to thank the opportunity to post here at Indio de Rey! I believe it is a great project, and shares my philosophy: Knowledge is like fire in a candle. You can always light someone else’s candle without diminishing your own. Moreover, once it is done, there is double the light for everyone. So without further delay, I would like to talk to you a little bit about the current Brazilian economy situation, and a little history retrospect.

JessicaBrazil, just like many Latin American countries, lived an authoritarian military dictatorship from 1964 to 1985. We all know those political transitions never go as smoothly as we would have hoped, carrying severe spillover effects over many different aspects of society, including the economy. Brazil then lived a severe hyperinflation, and many heterodox plans were implemented on…

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