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I was a child at the time, but I remember salaries, prices, taxes, everything followed an index, the URV (real value unit). The index then became the Real we ha
by rubinelli 7y ago
I was a child at the time, but I remember salaries, prices, taxes, everything followed an index, the URV (real value unit). The index then became the Real we have today, and indexation was abolished. So businesses had something reasonably stable to base their finances. Still, the queues at markets on payday were enormous, since most workers would go buy groceries for the whole month as soon as they got their salary.
- forinti 7y agoBrazilian inflation is quite interesting. It is usually seen as failure, but it can be argued that the country was actually very efficient in handling it (and for so long). It was really an administered inflation. The country had all sorts of indexes and triggers that guaranteed the force necessary to keep it going. At the same time, the infrastructure was built for the constant devaluation and frequent currency changes. Already in the 1980s you could easily transfer money to any place and to any bank. There was no need for something like Western Union. People used dollars as a reserve, but not as much as in other South American countries. You certainly didn't see prices advertised in dollars.
- finnh 7y agoGreat Planet Money episode about the RVU: https://www.npr.org/sections/money/2015/12/02/458222801/episode-216-how-four-drinking-buddies-saved-brazil https://www.npr.org/sections/money/2015/12/02/458222801/epis...