A 2017 article in the Wall Street Journal discussed the decision by Brazil’s central bank to cut the SELIC rate, which is the equivalent in Brazil of the federal funds rate in the United States. According to the article, the cut occurred “as the country’s inflation rate continues to fall quickly and the economy still struggles.”

a. In what sense do you think the Brazilian economy was “struggling” when this article was published?
b. Why would a cut in the SELIC rate be an appropriate policy action at a time when the inflation rate was falling and the economy was struggling?