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It's also valid to mention that the impeached president also ended up helping out in one way: he froze the saving accounts, since one way to stop inflation is t
by cbernini 16y ago
It's also valid to mention that the impeached president also ended up helping out in one way: he froze the saving accounts, since one way to stop inflation is to cut down the buying power of the population.
- diego_moita 16y agoThat is what classic theory says and, in truth, for a brief period of time, inflation receded when Collor (the impeached) froze savings. However the fact is that it recovered back again to high levels during Collor's mandate. The cut down in buying power was achieved mostly through fiscal policy, not consumption restriction.
- cbernini 16y agoWell, I was 7 back then, so I really said what someone else explained to me. That was my bad.