2 ms·
A continually decaying value would be complex to manage, but perhaps you could achieve a similar impact following a version of the approach used in Brazil to ta
by monkeycantype 6y ago
A continually decaying value would be complex to manage, but perhaps you could achieve a similar impact following a version of the approach used in Brazil to target runaway inflation. (please jump in if you know the details better than I recall) Prices and salaries were struck in a notional currency the Plano Real, but in daily life people used the Cruzeiro Real, and a daily price was struck for the conversion from Cruzeiro real to a Plano Real.
Fed bank accounts balances could be in Cruzeiro Dollars, with a weekly conversion rate published to Plano Dollars
- toomuchtodo 6y agoThis Planet Money episode (21 minutes) goes into detail about the scheme you mention. Excellent listen. 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...