NPR–How Fake Money Saved Brazil

This is a story about how an economist and his buddies tricked the people of Brazil into saving the country from rampant inflation. They had a crazy, unlikely plan, and it worked.

Twenty years ago, Brazil’s inflation rate hit 80 percent per month. At that rate, if eggs cost $1 one day, they’ll cost $2 a month later. If it keeps up for a year, they’ll cost $1,000.

In practice, this meant stores had to change their prices every day. The guy in the grocery store would walk the aisles putting new price stickers on the food. Shoppers would run ahead of him, so they could buy their food at the previous day’s price….

Read or better yet listen to it all.

Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, Brazil, Consumer/consumer spending, Corporations/Corporate Life, Credit Markets, Currency Markets, Economy, History, Politics in General, South America, The Banking System/Sector

One comment on “NPR–How Fake Money Saved Brazil

  1. Kendall Harmon says:

    This is a terrific story and a model for good journalism.