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6min chapter
Macroeconomics 4: Inflation & Drinking Buddies
Planet Money Summer School
The Inflationary Spirale in Brazil
Luigi: Inflation is a self-fulfilling prophecy. If you expect prices to go up, then you rush to buy the goods and that tends to push them up even more. The inflation rate in brazil in 19 90 was about 80 % a month. We'll hear how four former drinking buddies from grad school were put in charge of Brazil's biggest economic crisis ever.
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