But these reforms pale into insignificance compared with its decision to maintain the price indexation of the basic state pension.

ECONOMIST: Pensions: What am I bid? | The

The trouble for Mr Cardoso is that in Brazil any devaluation would be a messy affair, risking a return to the psychology of inflation and so in practice, if not this time in law to the price indexation that made inflation so chronic.

ECONOMIST: Brazil on borrowed time

The indexation should be to the average wage, not to the general price level.

FORBES: Greg Mankiw's Excellent Question: Why a $9 Minimum Wage? Why Not $90? Or 90 cents?