Re:How Fake Money Saved Brazil (2010)
by theiostream on Sunday September 04, 2016 @12:07AM
(#12422630)
This is wrong. Actually, the LRF was only sanctioned in 2000, when inflation was already at 5.97% yearly.
The main factor behind reducing the inflation was not the URV hack, but the government's fulfilled commitment to markets to keep inflation low at all costs: through skyrocketing interest rates [around 25%], for instance (thus reducing credit -> reducing consumption -> reducing prices); or by binding it to the US Dollar and bankrupting many national industries.
The main factor behind reducing the inflation was not the URV hack, but the government's fulfilled commitment to markets to keep inflation low at all costs: through skyrocketing interest rates [around 25%], for instance (thus reducing credit -> reducing consumption -> reducing prices); or by binding it to the US Dollar and bankrupting many national industries.