3 ms·

Not a real story. Hyperinflation in latin america was systemic and ended in almost all countries around the same time, most of them didn't change their currency

by meira 11y ago

Not a real story. Hyperinflation in latin america was systemic and ended in almost all countries around the same time, most of them didn't change their currency. And with sucessive crashes (97, 99, 2002), we can't call it a success.

outworlder 11y ago
If not a real story, then it is a pretty good correlation! Hyperinflation abruptly stopped the month after Real was introduced. All previous governments tried and failed to control it. The Real was a success. Mismanagement of the economy later on has nothing to do with it.
- meira 11y ago
  Of course, some of the measures were "effective" against inflation. The Brazilian Central Bank fixed 1 BRL to worth 1 USD and lowered a lot of import fees, flooding Brazil with US goods. This helped put prices down at cost of our own industries.
  - outworlder 11y ago
    So, temporarily decreasing the artificial "protections" that those inefficient and outdated industries enjoy? That is a good thing.
    - meira 11y ago
      Yeah, probably some of them (the economist and his buddies) thought the same and didn't give a shit. What happened them? Most of Brazilian industries got broke or were acquired under great circumstances by foreign companies. Long live plutocrats.
      - rglullis 11y ago
        If you think that hyperinflation would solve itself without any of the policies adopted - fiscal tightening, privatization of troubled state owned companies, opening up the market, etc - I'd love to hear about your explanation for the current state of Venezuela.
      - omegaworks 11y ago
        The narrators so quickly and casually disregarded the complete annihilation of the textile manufacturer...
ianstallings 11y ago
But given Brazil's economy compared to the others, and it's inherent influence on the others because of that, wouldn't it be reasonable to say it might be a story?

3 ms·

Not a real story. Hyperinflation in latin america was systemic and ended in almost all countries around the same time, most of them didn't change their currency

by meira 11y ago

outworlder 11y ago
If not a real story, then it is a pretty good correlation! Hyperinflation abruptly stopped the month after Real was introduced. All previous governments tried and failed to control it. The Real was a success. Mismanagement of the economy later on has nothing to do with it.
- meira 11y ago
  Of course, some of the measures were "effective" against inflation. The Brazilian Central Bank fixed 1 BRL to worth 1 USD and lowered a lot of import fees, flooding Brazil with US goods. This helped put prices down at cost of our own industries.
  - outworlder 11y ago
    So, temporarily decreasing the artificial "protections" that those inefficient and outdated industries enjoy? That is a good thing.
    - meira 11y ago
      Yeah, probably some of them (the economist and his buddies) thought the same and didn't give a shit. What happened them? Most of Brazilian industries got broke or were acquired under great circumstances by foreign companies. Long live plutocrats.
      - rglullis 11y ago
        If you think that hyperinflation would solve itself without any of the policies adopted - fiscal tightening, privatization of troubled state owned companies, opening up the market, etc - I'd love to hear about your explanation for the current state of Venezuela.
      - omegaworks 11y ago
        The narrators so quickly and casually disregarded the complete annihilation of the textile manufacturer...
ianstallings 11y ago
But given Brazil's economy compared to the others, and it's inherent influence on the others because of that, wouldn't it be reasonable to say it might be a story?