The Brazil economic growth has been slowing down since 2011. To deal with stagflation, Brazil central bank introduced a series of "non-interest rate instruments" as stimulus measures and released liquidity of $ 20.2 billion for banking system. ANBOUND research team thinks that the way Brazil deals with stagflation may not be effective. With the slowdown of economic growth and high inflation, only releasing liquidity is hard to improve economic growth. What's worse, it might further increase inflation and lead to the exacerbation of stagflation. Industrial restructuring will be more helpful to enhance economic growth and control inflation. The Brazilian government needs innovative policy mix to handle the current stagflation.