Government of capital against labor?

Abstract

Lula began his term in exceptional conditions. In the economy, an important external adjustment had already been basically made, with the return in 2002 of consistent trade surpluses, which were projected for 2003 and 2004. The impact of exchange rate devaluation on inflation contaminated the second half of 2002, but, as economists expected, it began to lose strength in November, with the indices converging from then on, quickly, to very low levels; in March 2003, in the third month of the new government, the indices were already close to zero.