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>That facilitated more disciplined monetary policy and the reduction of inflation from 25 percent per month when the president came to office to 2.2 percent in

>That facilitated more disciplined monetary policy and the reduction of inflation from 25 percent per month when the president came to office to 2.2 percent in January 2025. 25% is ridiculously high even for a yearly inflation rate. But to have it monthly means the value of the currency halves every 3 months. I thought there must have been a typo somewhere, but sure enough, that is the correct value. https://tradingeconomics.com/argentina/inflation-rate-mom https://tradingeconomics.com/argentina/inflation-rate-mom

ryandamm 2y ago
It has been significantly higher in the recent past. For fun, look up how Brazil tamed inflation by creating a fake currency it never actually issued. (Taking off so no time to look it up myself.)
- gus_massa 2y ago
  Probably "How Fake Money Saved Brazil" http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake-money-saved-brazil http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake... A few old discussions with 800 comments in total https://hn.algolia.com/?q=How+Fake+Money+Saved+Brazil https://hn.algolia.com/?q=How+Fake+Money+Saved+Brazil After some time, they actually issued the bills of the new fake money that magically got real (pun fully intended). Here in Argentina we had almost simultaneity the "Convertibility Plan" https://en.wikipedia.org/wiki/Convertibility_plan https://en.wikipedia.org/wiki/Convertibility_plan <voice="Mingo"> One (AR)Peso equal to One (US)Dollar</voice>. It was successful to reduce the inflation but it was hard to drop the peg later and it caused a lot of problems. The current government is "crawling peg", of 2% reduced recently to 1%, so people does not get attached to a magic number. (It may be brilliant or a disaster, we will know in 10 years.)
- piva00 2y ago
  I lived in Brazil during hyperinflation, and the transition to the Real. During that time we would go buy groceries at the first moment after a paycheck, filling up carts to last as long as possible because prices would be changing not just every day but a few times a day, grocery stores would employ people whose only job was to remark prices on the shelves in the morning, afternoon, and evening. At the time I don't think many people believed that yet another currency change (we had gone through the Cruzado, to Cruzado novo, to Cruzeiro, to Cruzeiro real in a span of 8 years) would solve it, I was too young to understand the plan and it just felt like another annoying swap of currency I needed to do. The URV (real unity of value) was this abstract thing we could use as benchmark against the previous currency (Cruzeiro real) and the new one being introduced (Real, the one living to this day), the more sweeping changes were broad fiscal reforms, and removing the stupid indexation between prices and wages.
lezojeda 2y ago
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ryandamm 2y ago

It has been significantly higher in the recent past. For fun, look up how Brazil tamed inflation by creating a fake currency it never actually issued. (Taking off so no time to look it up myself.)

gus_massa 2y ago
Probably "How Fake Money Saved Brazil" http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake-money-saved-brazil http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake... A few old discussions with 800 comments in total https://hn.algolia.com/?q=How+Fake+Money+Saved+Brazil https://hn.algolia.com/?q=How+Fake+Money+Saved+Brazil After some time, they actually issued the bills of the new fake money that magically got real (pun fully intended). Here in Argentina we had almost simultaneity the "Convertibility Plan" https://en.wikipedia.org/wiki/Convertibility_plan https://en.wikipedia.org/wiki/Convertibility_plan <voice="Mingo"> One (AR)Peso equal to One (US)Dollar</voice>. It was successful to reduce the inflation but it was hard to drop the peg later and it caused a lot of problems. The current government is "crawling peg", of 2% reduced recently to 1%, so people does not get attached to a magic number. (It may be brilliant or a disaster, we will know in 10 years.)
piva00 2y ago
I lived in Brazil during hyperinflation, and the transition to the Real. During that time we would go buy groceries at the first moment after a paycheck, filling up carts to last as long as possible because prices would be changing not just every day but a few times a day, grocery stores would employ people whose only job was to remark prices on the shelves in the morning, afternoon, and evening. At the time I don't think many people believed that yet another currency change (we had gone through the Cruzado, to Cruzado novo, to Cruzeiro, to Cruzeiro real in a span of 8 years) would solve it, I was too young to understand the plan and it just felt like another annoying swap of currency I needed to do. The URV (real unity of value) was this abstract thing we could use as benchmark against the previous currency (Cruzeiro real) and the new one being introduced (Real, the one living to this day), the more sweeping changes were broad fiscal reforms, and removing the stupid indexation between prices and wages.

lezojeda 2y ago

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