Explain how brazil was able to reduce the rate of inflation, International Economics

Assignment Help:

Q. Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?

Answer: By initiating a new currency and initially pegging it to the dollar. At the cost of extensive bank failures high interest rates in 1995 and the shift to a fixed upwardly crawling peg and a substantial real appreciation of the local currency.

Related Discussions:- Explain how brazil was able to reduce the rate of inflation

Describing the classical theory of international trade, I am trying to comp...

I am trying to complete this homework assignment and I need to use an example to describe and explain the classical theory of international trade, could you guys help me out?

Global crisis, Chose a problematic situation that is related to your workpl...

Chose a problematic situation that is related to your workplace and use the following approach to investigate it. Part A: i- Give a brief description of the situation.

Exchange rate , how is exchange rate determined.

how is exchange rate determined.

Economic situattion, what is the current economic situation in the world?

what is the current economic situation in the world?

Manage the translation risk of your multinational enterprise, Question : ...

Question : (a) Differentiate between Transaction, economic risk and Translation risk in foreign exchange market. (use an illustrative and numerical example in each case. (b)

Hospital manager function, Hospital Manager Function The manager of th...

Hospital Manager Function The manager of the hospital in IMC is responsible for many things: • Follow-up to the orderly conduct of work at the hospital to achieve high qual

Capital gain in high inflation economy, Hello, I rent an appartment in Braz...

Hello, I rent an appartment in Brazil, a country known for its high inflation rates, but I live in Switzerland. Does this mean when I exchange Reais to Swiss Francs (in a +- consta

Trade unions, conditions for trade unions to claim for higher wages

conditions for trade unions to claim for higher wages

Pestel framework, The PESTEL is a strategic development technique that prov...

The PESTEL is a strategic development technique that provides a helpful framework for analyzing the environmental pressures on an organization (Rogers, 1999). PESTEL framew

Explain black-scholes european call option pricing formula, Problem: a)...

Problem: a) Write down and explain the Black-Scholes European call option pricing formula. Discuss how call prices it delivers change with each of the inputs to the calculatio

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages