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

External economic environment, The hospital, as an open system, affects and...

The hospital, as an open system, affects and is affected by the surrounding environment; it is incumbent on staff to monitor and continuously track the variables contained in order

How to keep the exchange rate fixed, Q. If the central bank does not purcha...

Q. If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at E 0 ? An

What is the ipo firm strategy & dcf, • What is the IPO firm's strategy? Wha...

• What is the IPO firm's strategy? What are the sources of its competitive advantage? How sustainable is it's competitive advantage? What does your analysis imply for it's valuatio

Explain theoretical and methodological aspects , Explain Theoretical and me...

Explain Theoretical and methodological aspects of international economic relations

Asignmnent , construct a production possibilities frontier that represents ...

construct a production possibilities frontier that represents japan''s goal of producing both cars and housing. Assume the japanase economy is in a downtyrn and indicate with an Xt

Offer Curve.., How to derive offer curve and its difference from reciprocal...

How to derive offer curve and its difference from reciprocal demand curve

Exchange rate between the dollar and the euro, Q. What is the real ex...

Q. What is the real exchange rate between the dollar and the euro equal to? Answer: Let actual dollar/euro exchange rate q$/ENominal exchange rate E$/EPrice of an unchan

.., Ask qu. What are the various forms of economic integration? estion #Min...

Ask qu. What are the various forms of economic integration? estion #Minimum 100 words accepted#

Discuss differences between absolute ppp and relative ppp, Discuss the diff...

Discuss the differences between Absolute PPP and Relative PPP . Answer:  Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the

Relationship between ppp and the law of one price, Q. Discuss the r...

Q. Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity appli

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd