Last January, when the country's currency was in free fall after a disorderly devaluation, Brazil's Congress at last plucked up the courage to approve two overdue reforms, at the fifth time of asking by the government of President Fernando Henrique Cardoso.

ECONOMIST: Nuts in Brazil

Despite an initial big fall in its currency, the real, after Brazil abandoned its exchange-rate peg, inflation in 1999 was within its target range at just under 9%.

ECONOMIST: Floating with an anchor

So the burden of restoring confidence must fall on fiscal austerity, a rare commodity in Brazil.

ECONOMIST: Brazil��s Lenten diet

This fall, for example, the company is planning a pop-up boutique in Brazil to acquaint their growing clientele there with the London designers that Moda carries.

WSJ: The Ladies Behind Moda Operandi | WSJ. Magazine May 2013

But that premium must fall further if Brazil is to be able to honour its debts in the medium term.

ECONOMIST: Brazil's presidency