Brazil Retreat From Inflation-Taming Plan Makes Investors Hedge

Brazilian officials are turning away from a 15-year old formula for success as worldwide financial storms erode faith in three core policies that ended decades of economic crisis, according to former policy makers and analysts who lived through the turmoil.

The so-called tripod of inflation targeting, low budget deficits and a floating exchange rate has supported the longest period of growth in Latin America’s biggest economy since the 1970s, helping to lift millions out of poverty and winning Brazil its first-ever investment grade rating.